Correlation Between Sinosteel Luonai and JuneYao Dairy
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By analyzing existing cross correlation between Sinosteel Luonai Materials and JuneYao Dairy Co, you can compare the effects of market volatilities on Sinosteel Luonai and JuneYao Dairy 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 Sinosteel Luonai with a short position of JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and JuneYao Dairy.
Diversification Opportunities for Sinosteel Luonai and JuneYao Dairy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and JuneYao is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy and Sinosteel Luonai 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 Sinosteel Luonai Materials are associated (or correlated) with JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and JuneYao Dairy
Assuming the 90 days trading horizon Sinosteel Luonai is expected to generate 47.43 times less return on investment than JuneYao Dairy. But when comparing it to its historical volatility, Sinosteel Luonai Materials is 2.72 times less risky than JuneYao Dairy. It trades about 0.02 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. JuneYao Dairy Co
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| JuneYao Dairy |
Sinosteel Luonai and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and JuneYao Dairy
The main advantage of trading using opposite Sinosteel Luonai and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Shandong Gold Mining |
| JuneYao Dairy vs. Ningxia Building Materials | JuneYao Dairy vs. Sinosteel Luonai Materials | JuneYao Dairy vs. Cultural Investment Holdings | JuneYao Dairy vs. Jiangsu Yueda Investment |
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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