Correlation Between JuneYao Dairy and Sichuan Hebang
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By analyzing existing cross correlation between JuneYao Dairy Co and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on JuneYao Dairy and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Sichuan Hebang.
Diversification Opportunities for JuneYao Dairy and Sichuan Hebang
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JuneYao and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Sichuan Hebang go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Sichuan Hebang
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Sichuan Hebang. In addition to that, JuneYao Dairy is 1.6 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.04 of its total potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.05 per unit of volatility. If you would invest 299.00 in Sichuan Hebang Biotechnology on December 12, 2024 and sell it today you would lose (113.00) from holding Sichuan Hebang Biotechnology or give up 37.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| JuneYao Dairy |
| Sichuan Hebang Biote |
JuneYao Dairy and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Sichuan Hebang
The main advantage of trading using opposite JuneYao Dairy and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| JuneYao Dairy vs. Shantui Construction Machinery | ||
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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