Correlation Between Zhejiang JIULI and HUANLEJIA Food
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and HUANLEJIA Food Group, you can compare the effects of market volatilities on Zhejiang JIULI and HUANLEJIA Food 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 Zhejiang JIULI with a short position of HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and HUANLEJIA Food.
Diversification Opportunities for Zhejiang JIULI and HUANLEJIA Food
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and HUANLEJIA is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and HUANLEJIA Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUANLEJIA Food Group and Zhejiang JIULI 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 Zhejiang JIULI Hi tech are associated (or correlated) with HUANLEJIA Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUANLEJIA Food Group has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and HUANLEJIA Food
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 1.04 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.86 times less risky than HUANLEJIA Food. It trades about 0.07 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,265 in HUANLEJIA Food Group on September 13, 2024 and sell it today you would earn a total of 479.00 from holding HUANLEJIA Food Group or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. HUANLEJIA Food Group
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| HUANLEJIA Food Group |
Zhejiang JIULI and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and HUANLEJIA Food
The main advantage of trading using opposite Zhejiang JIULI and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, HUANLEJIA Food 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 HUANLEJIA Food will offset losses from the drop in HUANLEJIA Food's long position.| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI vs. Shandong Gold Mining |
| HUANLEJIA Food vs. Zhejiang JIULI Hi tech | HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Tongling Nonferrous Metals | HUANLEJIA Food vs. Guangdong Jingyi Metal |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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