Correlation Between Yunnan Jianzhijia and Suzhou Xingye
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Suzhou Xingye Material, you can compare the effects of market volatilities on Yunnan Jianzhijia and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Suzhou Xingye.
Diversification Opportunities for Yunnan Jianzhijia and Suzhou Xingye
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Suzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Suzhou Xingye
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.1 times less risky than Suzhou Xingye. The stock trades about -0.04 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,132 in Suzhou Xingye Material on September 1, 2024 and sell it today you would lose (197.00) from holding Suzhou Xingye Material or give up 17.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Suzhou Xingye Material
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Suzhou Xingye Material |
Yunnan Jianzhijia and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Suzhou Xingye
The main advantage of trading using opposite Yunnan Jianzhijia and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Yunnan Jianzhijia vs. Dalian Thermal Power | Yunnan Jianzhijia vs. Ningbo Jintian Copper | Yunnan Jianzhijia vs. Pengxin International Mining | Yunnan Jianzhijia vs. Juewei Food Co |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
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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