Correlation Between Allwin Telecommunicatio and Jiahe Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and Jiahe Foods Industry, you can compare the effects of market volatilities on Allwin Telecommunicatio 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 Allwin Telecommunicatio with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Jiahe Foods.
Diversification Opportunities for Allwin Telecommunicatio and Jiahe Foods
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allwin and Jiahe is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co 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 Allwin Telecommunicatio 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 Allwin Telecommunication Co 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 Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Jiahe Foods go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Jiahe Foods
Assuming the 90 days trading horizon Allwin Telecommunicatio is expected to generate 1.3 times less return on investment than Jiahe Foods. In addition to that, Allwin Telecommunicatio is 1.58 times more volatile than Jiahe Foods Industry. It trades about 0.11 of its total potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.23 per unit of volatility. If you would invest 1,198 in Jiahe Foods Industry on November 7, 2024 and sell it today you would earn a total of 77.00 from holding Jiahe Foods Industry or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Jiahe Foods Industry
Performance |
| Timeline |
| Allwin Telecommunicatio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiahe Foods Industry |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Allwin Telecommunicatio and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Jiahe Foods
The main advantage of trading using opposite Allwin Telecommunicatio and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio 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.The idea behind Allwin Telecommunication Co and Jiahe Foods Industry 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |