Correlation Between JuneYao Dairy and Zhejiang Yinlun
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By analyzing existing cross correlation between JuneYao Dairy Co and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on JuneYao Dairy and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Zhejiang Yinlun.
Diversification Opportunities for JuneYao Dairy and Zhejiang Yinlun
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JuneYao and Zhejiang is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Zhejiang Yinlun
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Zhejiang Yinlun. In addition to that, JuneYao Dairy is 1.62 times more volatile than Zhejiang Yinlun Machinery. It trades about -0.08 of its total potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.14 per unit of volatility. If you would invest 1,788 in Zhejiang Yinlun Machinery on October 30, 2024 and sell it today you would earn a total of 228.00 from holding Zhejiang Yinlun Machinery or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| JuneYao Dairy |
| Zhejiang Yinlun Machinery |
JuneYao Dairy and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Zhejiang Yinlun
The main advantage of trading using opposite JuneYao Dairy and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun'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 |
| Zhejiang Yinlun vs. Dymatic Chemicals | Zhejiang Yinlun vs. Lianhe Chemical Technology | Zhejiang Yinlun vs. Daoming OpticsChemical Co | Zhejiang Yinlun vs. Queclink Wireless Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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