Correlation Between Eastern Communications and JuneYao Dairy
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By analyzing existing cross correlation between Eastern Communications Co and JuneYao Dairy Co, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and JuneYao Dairy.
Diversification Opportunities for Eastern Communications and JuneYao Dairy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastern and JuneYao is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy and Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Eastern Communications and JuneYao Dairy
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.5 times more return on investment than JuneYao Dairy. However, Eastern Communications Co is 2.01 times less risky than JuneYao Dairy. It trades about -0.08 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.08 per unit of risk. If you would invest 43.00 in Eastern Communications Co on October 30, 2024 and sell it today you would lose (3.00) from holding Eastern Communications Co or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. JuneYao Dairy Co
Performance |
| Timeline |
| Eastern Communications |
| JuneYao Dairy |
Eastern Communications and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and JuneYao Dairy
The main advantage of trading using opposite Eastern Communications and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Bus Online Co | Eastern Communications vs. Holitech Technology Co | Eastern Communications vs. Gome Telecom Equipment | Eastern Communications vs. Cultural Investment Holdings |
| JuneYao Dairy vs. Hunan Mendale Hometextile | JuneYao Dairy vs. DO Home Collection | JuneYao Dairy vs. Shanghai CEO Environmental | JuneYao Dairy vs. UE Furniture Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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