Correlation Between JuneYao Dairy and Zhongshan Broad
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By analyzing existing cross correlation between JuneYao Dairy Co and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on JuneYao Dairy and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Zhongshan Broad.
Diversification Opportunities for JuneYao Dairy and Zhongshan Broad
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Zhongshan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Zhongshan Broad go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Zhongshan Broad
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 2.9 times more return on investment than Zhongshan Broad. However, JuneYao Dairy is 2.9 times more volatile than Zhongshan Broad Ocean Motor. It trades about 0.15 of its potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about -0.02 per unit of risk. If you would invest 596.00 in JuneYao Dairy Co on September 22, 2024 and sell it today you would earn a total of 89.00 from holding JuneYao Dairy Co or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| JuneYao Dairy |
| Zhongshan Broad Ocean |
JuneYao Dairy and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Zhongshan Broad
The main advantage of trading using opposite JuneYao Dairy and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| JuneYao Dairy vs. Industrial and Commercial | JuneYao Dairy vs. Agricultural Bank of | JuneYao Dairy vs. China Construction Bank | JuneYao Dairy vs. Bank of China |
| Zhongshan Broad vs. Changjiang Publishing Media | Zhongshan Broad vs. Shanghai Action Education | Zhongshan Broad vs. Eastern Communications Co | Zhongshan Broad vs. Songz Automobile Air |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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