Correlation Between JuneYao Dairy and Xinjiang Tianrun
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By analyzing existing cross correlation between JuneYao Dairy Co and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on JuneYao Dairy and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Xinjiang Tianrun.
Diversification Opportunities for JuneYao Dairy and Xinjiang Tianrun
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JuneYao and Xinjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Xinjiang Tianrun
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 0.78 times more return on investment than Xinjiang Tianrun. However, JuneYao Dairy Co is 1.27 times less risky than Xinjiang Tianrun. It trades about -0.17 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 per unit of risk. If you would invest 638.00 in JuneYao Dairy Co on November 3, 2024 and sell it today you would lose (53.00) from holding JuneYao Dairy Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| JuneYao Dairy |
| Xinjiang Tianrun Dairy |
JuneYao Dairy and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Xinjiang Tianrun
The main advantage of trading using opposite JuneYao Dairy and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| JuneYao Dairy vs. China Asset Management | JuneYao Dairy vs. Guangzhou Jinyi Media | JuneYao Dairy vs. Changjiang Publishing Media | JuneYao Dairy vs. BTG Hotels Group |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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