Correlation Between Yunnan Jianzhijia and Sinomach General
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Sinomach General Machinery, you can compare the effects of market volatilities on Yunnan Jianzhijia and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Sinomach General.
Diversification Opportunities for Yunnan Jianzhijia and Sinomach General
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Sinomach is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Sinomach General go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Sinomach General
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Sinomach General. In addition to that, Yunnan Jianzhijia is 1.19 times more volatile than Sinomach General Machinery. It trades about -0.27 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.3 per unit of volatility. If you would invest 1,690 in Sinomach General Machinery on October 12, 2024 and sell it today you would lose (269.00) from holding Sinomach General Machinery or give up 15.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Sinomach General Machinery
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Sinomach General Mac |
Yunnan Jianzhijia and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Sinomach General
The main advantage of trading using opposite Yunnan Jianzhijia and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Yunnan Jianzhijia vs. Ming Yang Smart | Yunnan Jianzhijia vs. 159681 | Yunnan Jianzhijia vs. 159005 | Yunnan Jianzhijia vs. Loctek Ergonomic Technology |
| Sinomach General vs. Yunnan Jianzhijia Health Chain | Sinomach General vs. Shanghai Rongtai Health | Sinomach General vs. De Rucci Healthy | Sinomach General vs. Dezhan HealthCare Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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