Correlation Between JuneYao Dairy and Changchun
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By analyzing existing cross correlation between JuneYao Dairy Co and Changchun UP Optotech, you can compare the effects of market volatilities on JuneYao Dairy and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Changchun.
Diversification Opportunities for JuneYao Dairy and Changchun
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JuneYao and Changchun is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Changchun go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Changchun
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Changchun. In addition to that, JuneYao Dairy is 1.19 times more volatile than Changchun UP Optotech. It trades about -0.38 of its total potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.08 per unit of volatility. If you would invest 4,039 in Changchun UP Optotech on October 16, 2024 and sell it today you would lose (212.00) from holding Changchun UP Optotech or give up 5.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Changchun UP Optotech
Performance |
| Timeline |
| JuneYao Dairy |
| Changchun UP Optotech |
JuneYao Dairy and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Changchun
The main advantage of trading using opposite JuneYao Dairy and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| JuneYao Dairy vs. Eastern Communications Co | JuneYao Dairy vs. Iat Automobile Technology | JuneYao Dairy vs. Liaoning Chengda Biotechnology | JuneYao Dairy vs. Wuhan Hvsen Biotechnology |
| Changchun vs. Time Publishing and | Changchun vs. Sunny Loan Top | Changchun vs. Tangel Publishing | Changchun vs. Yankershop Food Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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