Correlation Between JuneYao Dairy and Bank of Communications
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By analyzing existing cross correlation between JuneYao Dairy Co and Bank of Communications, you can compare the effects of market volatilities on JuneYao Dairy and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Bank of Communications.
Diversification Opportunities for JuneYao Dairy and Bank of Communications
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JuneYao and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Bank of Communications go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Bank of Communications
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 2.69 times more return on investment than Bank of Communications. However, JuneYao Dairy is 2.69 times more volatile than Bank of Communications. It trades about 0.03 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.02 per unit of risk. If you would invest 575.00 in JuneYao Dairy Co on November 6, 2024 and sell it today you would earn a total of 10.00 from holding JuneYao Dairy Co or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Bank of Communications
Performance |
| Timeline |
| JuneYao Dairy |
| Bank of Communications |
JuneYao Dairy and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Bank of Communications
The main advantage of trading using opposite JuneYao Dairy and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| JuneYao Dairy vs. Anhui Transport Consulting | JuneYao Dairy vs. 360 Security Technology | JuneYao Dairy vs. Hubei Forbon Technology | JuneYao Dairy vs. Maxvision Technology Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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