Correlation Between JuneYao Dairy and Huaibei Mining
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By analyzing existing cross correlation between JuneYao Dairy Co and Huaibei Mining Holdings, you can compare the effects of market volatilities on JuneYao Dairy and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Huaibei Mining.
Diversification Opportunities for JuneYao Dairy and Huaibei Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JuneYao and Huaibei is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Huaibei Mining go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Huaibei Mining
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Huaibei Mining. In addition to that, JuneYao Dairy is 2.71 times more volatile than Huaibei Mining Holdings. It trades about -0.39 of its total potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.36 per unit of volatility. If you would invest 1,437 in Huaibei Mining Holdings on October 16, 2024 and sell it today you would lose (122.00) from holding Huaibei Mining Holdings or give up 8.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Huaibei Mining Holdings
Performance |
| Timeline |
| JuneYao Dairy |
| Huaibei Mining Holdings |
JuneYao Dairy and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Huaibei Mining
The main advantage of trading using opposite JuneYao Dairy and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| JuneYao Dairy vs. Zhengzhou Coal Mining | JuneYao Dairy vs. Chengtun Mining Group | JuneYao Dairy vs. Hefei Metalforming Mach | JuneYao Dairy vs. Aurora Optoelectronics Co |
| Huaibei Mining vs. CSSC Offshore Marine | Huaibei Mining vs. Guangdong Qunxing Toys | Huaibei Mining vs. Do Fluoride Chemicals Co | Huaibei Mining vs. JuneYao Dairy 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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