Correlation Between JuneYao Dairy and Xinxiang Chemical
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By analyzing existing cross correlation between JuneYao Dairy Co and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on JuneYao Dairy and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Xinxiang Chemical.
Diversification Opportunities for JuneYao Dairy and Xinxiang Chemical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Xinxiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Xinxiang Chemical
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Xinxiang Chemical. In addition to that, JuneYao Dairy is 1.1 times more volatile than Xinxiang Chemical Fiber. It trades about -0.08 of its total potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.0 per unit of volatility. If you would invest 417.00 in Xinxiang Chemical Fiber on October 30, 2024 and sell it today you would lose (7.00) from holding Xinxiang Chemical Fiber or give up 1.68% 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. Xinxiang Chemical Fiber
Performance |
| Timeline |
| JuneYao Dairy |
| Xinxiang Chemical Fiber |
JuneYao Dairy and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Xinxiang Chemical
The main advantage of trading using opposite JuneYao Dairy and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| JuneYao Dairy vs. Hunan Mendale Hometextile | JuneYao Dairy vs. DO Home Collection | JuneYao Dairy vs. Shanghai CEO Environmental | JuneYao Dairy vs. UE Furniture Co |
| Xinxiang Chemical vs. Jinhui Mining Co | Xinxiang Chemical vs. Ningbo Construction Co | Xinxiang Chemical vs. Uroica Mining Safety | Xinxiang Chemical vs. Gifore Agricultural Machinery |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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