Correlation Between XinJiang GuoTong and Jiahe Foods
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Jiahe Foods Industry, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Jiahe Foods.
Diversification Opportunities for XinJiang GuoTong and Jiahe Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Jiahe is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline 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 XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Jiahe Foods go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Jiahe Foods
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.13 times more return on investment than Jiahe Foods. However, XinJiang GuoTong is 1.13 times more volatile than Jiahe Foods Industry. It trades about -0.01 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.01 per unit of risk. If you would invest 1,188 in XinJiang GuoTong Pipeline on November 4, 2024 and sell it today you would lose (368.00) from holding XinJiang GuoTong Pipeline or give up 30.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Jiahe Foods Industry
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Jiahe Foods Industry |
XinJiang GuoTong and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Jiahe Foods
The main advantage of trading using opposite XinJiang GuoTong and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Easyhome New Retail | XinJiang GuoTong vs. TongFu Microelectronics Co | XinJiang GuoTong vs. Bosera CMSK Industrial | XinJiang GuoTong vs. Guangdong Jingyi Metal |
| Jiahe Foods vs. Invengo Information Technology | Jiahe Foods vs. Hongrun Construction Group | Jiahe Foods vs. Northking Information Technology | Jiahe Foods vs. Linzhou Heavy Machinery |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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