Correlation Between JuneYao Dairy and Changchun Engley
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By analyzing existing cross correlation between JuneYao Dairy Co and Changchun Engley Automobile, you can compare the effects of market volatilities on JuneYao Dairy and Changchun Engley 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 Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Changchun Engley.
Diversification Opportunities for JuneYao Dairy and Changchun Engley
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Changchun is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Changchun Engley go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Changchun Engley
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Changchun Engley. In addition to that, JuneYao Dairy is 1.14 times more volatile than Changchun Engley Automobile. It trades about -0.38 of its total potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.37 per unit of volatility. If you would invest 433.00 in Changchun Engley Automobile on October 16, 2024 and sell it today you would lose (89.00) from holding Changchun Engley Automobile or give up 20.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Changchun Engley Automobile
Performance |
| Timeline |
| JuneYao Dairy |
| Changchun Engley Aut |
JuneYao Dairy and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Changchun Engley
The main advantage of trading using opposite JuneYao Dairy and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Changchun Engley 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 Engley will offset losses from the drop in Changchun Engley'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 Engley vs. Liaoning Dingjide Petrochemical | Changchun Engley vs. AVIC Fund Management | Changchun Engley vs. Dymatic Chemicals | Changchun Engley vs. Chengdu Spaceon Electronics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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