Correlation Between Songz Automobile and Jiahe Foods
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By analyzing existing cross correlation between Songz Automobile Air and Jiahe Foods Industry, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Jiahe Foods.
Diversification Opportunities for Songz Automobile and Jiahe Foods
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Songz and Jiahe is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and Jiahe Foods go up and down completely randomly.
Pair Corralation between Songz Automobile and Jiahe Foods
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.7 times more return on investment than Jiahe Foods. However, Songz Automobile Air is 1.42 times less risky than Jiahe Foods. It trades about -0.15 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.2 per unit of risk. If you would invest 709.00 in Songz Automobile Air on October 17, 2024 and sell it today you would lose (56.00) from holding Songz Automobile Air or give up 7.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Jiahe Foods Industry
Performance |
| Timeline |
| Songz Automobile Air |
| Jiahe Foods Industry |
Songz Automobile and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Jiahe Foods
The main advantage of trading using opposite Songz Automobile and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. PKU HealthCare Corp | Songz Automobile vs. Humanwell Healthcare Group | Songz Automobile vs. Everjoy Health Group | Songz Automobile vs. Anhui Huaren Health |
| Jiahe Foods vs. Cangzhou Mingzhu Plastic | Jiahe Foods vs. Songz Automobile Air | Jiahe Foods vs. Dongfeng Automobile Co | Jiahe Foods vs. Jiangnan Mould Plastic |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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