Correlation Between City Development and Jiahe Foods
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By analyzing existing cross correlation between City Development Environment and Jiahe Foods Industry, you can compare the effects of market volatilities on City Development and Jiahe Foods 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 City Development with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Jiahe Foods.
Diversification Opportunities for City Development and Jiahe Foods
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Jiahe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry and City Development 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 City Development Environment are associated (or correlated) with Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of City Development i.e., City Development and Jiahe Foods go up and down completely randomly.
Pair Corralation between City Development and Jiahe Foods
Assuming the 90 days trading horizon City Development Environment is expected to generate 0.37 times more return on investment than Jiahe Foods. However, City Development Environment is 2.68 times less risky than Jiahe Foods. It trades about 0.04 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.14 per unit of risk. If you would invest 1,275 in City Development Environment on November 3, 2024 and sell it today you would earn a total of 8.00 from holding City Development Environment or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Development Environment vs. Jiahe Foods Industry
Performance |
| Timeline |
| City Development Env |
| Jiahe Foods Industry |
City Development and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Jiahe Foods
The main advantage of trading using opposite City Development and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| City Development vs. Dareway Software Co | City Development vs. APT Medical | City Development vs. Guangdong Transtek Medical | City Development vs. Jiangsu Hoperun Software |
| Jiahe Foods vs. Beijing Seeyon Internet | Jiahe Foods vs. Offshore Oil Engineering | Jiahe Foods vs. Maxvision Technology Corp | Jiahe Foods vs. Strait Innovation Internet |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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