Correlation Between JuneYao Dairy and Guocheng Mining
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By analyzing existing cross correlation between JuneYao Dairy Co and Guocheng Mining Co, you can compare the effects of market volatilities on JuneYao Dairy and Guocheng Mining 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 JuneYao Dairy with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Guocheng Mining.
Diversification Opportunities for JuneYao Dairy and Guocheng Mining
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Guocheng is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and JuneYao Dairy 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 JuneYao Dairy Co are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Guocheng Mining go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Guocheng Mining
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 1.01 times more return on investment than Guocheng Mining. However, JuneYao Dairy is 1.01 times more volatile than Guocheng Mining Co. It trades about -0.24 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.28 per unit of risk. If you would invest 745.00 in JuneYao Dairy Co on October 12, 2024 and sell it today you would lose (151.00) from holding JuneYao Dairy Co or give up 20.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Guocheng Mining Co
Performance |
| Timeline |
| JuneYao Dairy |
| Guocheng Mining |
JuneYao Dairy and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Guocheng Mining
The main advantage of trading using opposite JuneYao Dairy and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| JuneYao Dairy vs. Shanghai Material Trading | JuneYao Dairy vs. Hubei Geoway Investment | JuneYao Dairy vs. Jointo Energy Investment | JuneYao Dairy vs. Nanjing Putian Telecommunications |
| Guocheng Mining vs. Nuode Investment Co | Guocheng Mining vs. Beijing Mainstreets Investment | Guocheng Mining vs. RoadMain T Co | Guocheng Mining vs. Shenzhen Centralcon Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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