Correlation Between Yunnan Jianzhijia and Gansu Yasheng
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Yunnan Jianzhijia and Gansu Yasheng and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yunnan Jianzhijia with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Gansu Yasheng.
Diversification Opportunities for Yunnan Jianzhijia and Gansu Yasheng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Gansu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and Yunnan Jianzhijia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yunnan Jianzhijia Health Chain are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Gansu Yasheng
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Gansu Yasheng. In addition to that, Yunnan Jianzhijia is 1.26 times more volatile than Gansu Yasheng Industrial. It trades about -0.01 of its total potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.15 per unit of volatility. If you would invest 297.00 in Gansu Yasheng Industrial on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Gansu Yasheng Industrial or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Gansu Yasheng Industrial |
Yunnan Jianzhijia and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Gansu Yasheng
The main advantage of trading using opposite Yunnan Jianzhijia and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Gansu Yasheng can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Yunnan Jianzhijia vs. China Petroleum Chemical | Yunnan Jianzhijia vs. PetroChina Co Ltd | Yunnan Jianzhijia vs. China State Construction | Yunnan Jianzhijia vs. China Railway Group |
| Gansu Yasheng vs. China Petroleum Chemical | Gansu Yasheng vs. PetroChina Co Ltd | Gansu Yasheng vs. China State Construction | Gansu Yasheng vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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