Correlation Between JuneYao Dairy and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between JuneYao Dairy Co and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on JuneYao Dairy and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Zhengzhou Qianweiyangchu.
Diversification Opportunities for JuneYao Dairy and Zhengzhou Qianweiyangchu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JuneYao and Zhengzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 1.44 times more return on investment than Zhengzhou Qianweiyangchu. However, JuneYao Dairy is 1.44 times more volatile than Zhengzhou Qianweiyangchu Food. It trades about 0.11 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.03 per unit of risk. If you would invest 595.00 in JuneYao Dairy Co on September 26, 2024 and sell it today you would earn a total of 57.00 from holding JuneYao Dairy Co or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| JuneYao Dairy |
| Zhengzhou Qianweiyangchu |
JuneYao Dairy and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite JuneYao Dairy and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| JuneYao Dairy vs. Nanjing Putian Telecommunications | JuneYao Dairy vs. Tianjin Realty Development | JuneYao Dairy vs. Kangyue Technology Co | JuneYao Dairy vs. Shenzhen Hifuture Electric |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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