Correlation Between JuneYao Dairy and Beken Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JuneYao Dairy and Beken Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JuneYao Dairy and Beken Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JuneYao Dairy Co and Beken Corp, you can compare the effects of market volatilities on JuneYao Dairy and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Beken Corp.

Diversification Opportunities for JuneYao Dairy and Beken Corp

JuneYaoBekenDiversified AwayJuneYaoBekenDiversified Away100%
0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between JuneYao and Beken is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Beken Corp go up and down completely randomly.

Pair Corralation between JuneYao Dairy and Beken Corp

Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Beken Corp. But the stock apears to be less risky and, when comparing its historical volatility, JuneYao Dairy Co is 1.13 times less risky than Beken Corp. The stock trades about -0.05 of its potential returns per unit of risk. The Beken Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  3,219  in Beken Corp on October 12, 2024 and sell it today you would lose (179.00) from holding Beken Corp or give up 5.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.79%
ValuesDaily Returns

JuneYao Dairy Co  vs.  Beken Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -100102030
JavaScript chart by amCharts 3.21.15605388 603068
       Timeline  
JuneYao Dairy 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in JuneYao Dairy Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, JuneYao Dairy may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5.566.577.588.5
Beken Corp 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Beken Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Beken Corp sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan24262830323436

JuneYao Dairy and Beken Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.27-8.44-5.61-2.780.02.815.718.6211.5214.43 0.0200.0250.030
JavaScript chart by amCharts 3.21.15605388 603068
       Returns  

Pair Trading with JuneYao Dairy and Beken Corp

The main advantage of trading using opposite JuneYao Dairy and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.
The idea behind JuneYao Dairy Co and Beken Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios