Correlation Between JuneYao Dairy and Guangdong Skychem
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By analyzing existing cross correlation between JuneYao Dairy Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on JuneYao Dairy and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Guangdong Skychem.
Diversification Opportunities for JuneYao Dairy and Guangdong Skychem
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JuneYao and Guangdong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Guangdong Skychem go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Guangdong Skychem
Assuming the 90 days trading horizon JuneYao Dairy is expected to generate 4.89 times less return on investment than Guangdong Skychem. But when comparing it to its historical volatility, JuneYao Dairy Co is 1.26 times less risky than Guangdong Skychem. It trades about 0.05 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,990 in Guangdong Skychem Technology on September 27, 2024 and sell it today you would earn a total of 7,465 from holding Guangdong Skychem Technology or generate 149.6% 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. Guangdong Skychem Technology
Performance |
| Timeline |
| JuneYao Dairy |
| Guangdong Skychem |
JuneYao Dairy and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Guangdong Skychem
The main advantage of trading using opposite JuneYao Dairy and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| JuneYao Dairy vs. Semiconductor Manufacturing Electronics | JuneYao Dairy vs. Everjoy Health Group | JuneYao Dairy vs. Humanwell Healthcare Group | JuneYao Dairy vs. Kingclean Electric Co |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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