Correlation Between JuneYao Dairy and Bank of China
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By analyzing existing cross correlation between JuneYao Dairy Co and Bank of China, you can compare the effects of market volatilities on JuneYao Dairy and Bank of China 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 China. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Bank of China.
Diversification Opportunities for JuneYao Dairy and Bank of China
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Bank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 China. 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 China has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Bank of China go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Bank of China
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to generate 4.39 times more return on investment than Bank of China. However, JuneYao Dairy is 4.39 times more volatile than Bank of China. It trades about 0.36 of its potential returns per unit of risk. Bank of China is currently generating about 0.35 per unit of risk. If you would invest 594.00 in JuneYao Dairy Co on September 14, 2024 and sell it today you would earn a total of 226.00 from holding JuneYao Dairy Co or generate 38.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Bank of China
Performance |
| Timeline |
| JuneYao Dairy |
| Bank of China |
JuneYao Dairy and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Bank of China
The main advantage of trading using opposite JuneYao Dairy and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Bank of China 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 China will offset losses from the drop in Bank of China's long position.| JuneYao Dairy vs. Ningxia Building Materials | JuneYao Dairy vs. Sinosteel Luonai Materials | JuneYao Dairy vs. Cultural Investment Holdings | JuneYao Dairy vs. Jiangsu Yueda Investment |
| Bank of China vs. Industrial Bank Co | Bank of China vs. GRG Banking Equipment | Bank of China vs. Central Plains Environment | Bank of China vs. Guosheng Financial Holding |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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