Correlation Between Guangdong Shenglu and Jiahe Foods
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jiahe Foods Industry, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jiahe Foods.
Diversification Opportunities for Guangdong Shenglu and Jiahe Foods
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Jiahe is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Jiahe Foods go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jiahe Foods
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.78 times more return on investment than Jiahe Foods. However, Guangdong Shenglu Telecommunication is 1.28 times less risky than Jiahe Foods. It trades about -0.31 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.28 per unit of risk. If you would invest 756.00 in Guangdong Shenglu Telecommunication on October 11, 2024 and sell it today you would lose (124.00) from holding Guangdong Shenglu Telecommunication or give up 16.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Jiahe Foods Industry
Performance |
| Timeline |
| Guangdong Shenglu |
| Jiahe Foods Industry |
Guangdong Shenglu and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jiahe Foods
The main advantage of trading using opposite Guangdong Shenglu and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. Zhejiang Orient Gene | Guangdong Shenglu vs. APT Medical |
| Jiahe Foods vs. Wonders Information | Jiahe Foods vs. Guangdong Shenglu Telecommunication | Jiahe Foods vs. Dawning Information Industry | Jiahe Foods vs. TianJin 712 Communication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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