Correlation Between Shenzhen Hifuture and Jiahe Foods
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Jiahe Foods Industry, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Jiahe Foods.
Diversification Opportunities for Shenzhen Hifuture and Jiahe Foods
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Jiahe is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Jiahe Foods go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Jiahe Foods
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 2.0 times less return on investment than Jiahe Foods. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.34 times less risky than Jiahe Foods. It trades about 0.25 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,168 in Jiahe Foods Industry on September 1, 2024 and sell it today you would earn a total of 433.00 from holding Jiahe Foods Industry or generate 37.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Jiahe Foods Industry
Performance |
| Timeline |
| Shenzhen Hifuture |
| Jiahe Foods Industry |
Shenzhen Hifuture and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Jiahe Foods
The main advantage of trading using opposite Shenzhen Hifuture and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. CareRay Digital Medical | Shenzhen Hifuture vs. Chison Medical Technologies | Shenzhen Hifuture vs. Nanjing Vishee Medical | Shenzhen Hifuture vs. Linewell Software Co |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Shenzhen Hifuture Electric | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Shenyang Huitian Thermal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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