Correlation Between Cryoport and Jayud Global

Can any of the company-specific risk be diversified away by investing in both Cryoport and Jayud Global 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 Cryoport and Jayud Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cryoport and Jayud Global Logistics, you can compare the effects of market volatilities on Cryoport and Jayud Global 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 Cryoport with a short position of Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cryoport and Jayud Global.

Diversification Opportunities for Cryoport and Jayud Global

-0.58

Correlation Coefficient

Cryoport  Jayud Global

Excellent diversification

The 3 months correlation between Cryoport and Jayud is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cryoport and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and Cryoport 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 Cryoport are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Cryoport i.e., Cryoport and Jayud Global go up and down completely randomly.

Pair Corralation between Cryoport and Jayud Global

Given the investment horizon of 90 days Cryoport is expected to under-perform the Jayud Global. But the stock apears to be less risky and, when comparing its historical volatility, Cryoport is 2.3 times less risky than Jayud Global. The stock trades about -0.06 of its potential returns per unit of risk. The Jayud Global Logistics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  73.00  in Jayud Global Logistics on September 3, 2024 and sell it today you would lose (6.00) from holding Jayud Global Logistics or give up 8.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cryoport  vs.  Jayud Global Logistics

Cryoport

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cryoport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jayud Global Logistics

Risk-Adjusted Performance

2 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cryoport and Jayud Global

The main advantage of trading using opposite Cryoport and Jayud Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cryoport position performs unexpectedly, Jayud Global 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 Jayud Global will offset losses from the drop in Jayud Global's long position.

The idea behind Cryoport and Jayud Global Logistics 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.