Correlation Between Yunnan Jianzhijia and Sinosteel Luonai
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Yunnan Jianzhijia and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Sinosteel Luonai.
Diversification Opportunities for Yunnan Jianzhijia and Sinosteel Luonai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Sinosteel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Sinosteel Luonai
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Sinosteel Luonai. In addition to that, Yunnan Jianzhijia is 1.89 times more volatile than Sinosteel Luonai Materials. It trades about -0.14 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.11 per unit of volatility. If you would invest 398.00 in Sinosteel Luonai Materials on November 30, 2024 and sell it today you would lose (22.00) from holding Sinosteel Luonai Materials or give up 5.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Sinosteel Luonai Materials
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Sinosteel Luonai Mat |
Yunnan Jianzhijia and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Sinosteel Luonai
The main advantage of trading using opposite Yunnan Jianzhijia and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Yunnan Jianzhijia vs. Shenzhen Noposion Agrochemicals | Yunnan Jianzhijia vs. Shuhua Sports Co | Yunnan Jianzhijia vs. BCEG Environmental Remediation | Yunnan Jianzhijia vs. Dr Peng Telecom |
| Sinosteel Luonai vs. Hangzhou Gisway Information | Sinosteel Luonai vs. Biwin Storage Technology | Sinosteel Luonai vs. YLZ Information Tech | Sinosteel Luonai vs. Chengdu B ray Media |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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