Correlation Between JuneYao Dairy and Tibet Huayu
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By analyzing existing cross correlation between JuneYao Dairy Co and Tibet Huayu Mining, you can compare the effects of market volatilities on JuneYao Dairy and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Tibet Huayu.
Diversification Opportunities for JuneYao Dairy and Tibet Huayu
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JuneYao and Tibet is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Tibet Huayu go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Tibet Huayu
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Tibet Huayu. In addition to that, JuneYao Dairy is 2.25 times more volatile than Tibet Huayu Mining. It trades about -0.24 of its total potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.49 per unit of volatility. If you would invest 1,504 in Tibet Huayu Mining on October 12, 2024 and sell it today you would lose (267.00) from holding Tibet Huayu Mining or give up 17.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| JuneYao Dairy |
| Tibet Huayu Mining |
JuneYao Dairy and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Tibet Huayu
The main advantage of trading using opposite JuneYao Dairy and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| JuneYao Dairy vs. Shanghai Material Trading | JuneYao Dairy vs. Hubei Geoway Investment | JuneYao Dairy vs. Jointo Energy Investment | JuneYao Dairy vs. Nanjing Putian Telecommunications |
| Tibet Huayu vs. Muyuan Foodstuff Co | Tibet Huayu vs. Ningbo Tip Rubber | Tibet Huayu vs. Jinsanjiang Silicon Material | Tibet Huayu vs. Guangzhou Tinci Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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