Correlation Between Jiajia Food and Huaxia Eye
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By analyzing existing cross correlation between Jiajia Food Group and Huaxia Eye Hospital, you can compare the effects of market volatilities on Jiajia Food and Huaxia Eye 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 Jiajia Food with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Huaxia Eye.
Diversification Opportunities for Jiajia Food and Huaxia Eye
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiajia and Huaxia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and Jiajia Food 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 Jiajia Food Group are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Jiajia Food i.e., Jiajia Food and Huaxia Eye go up and down completely randomly.
Pair Corralation between Jiajia Food and Huaxia Eye
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 0.93 times more return on investment than Huaxia Eye. However, Jiajia Food Group is 1.08 times less risky than Huaxia Eye. It trades about 0.23 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about 0.01 per unit of risk. If you would invest 192.00 in Jiajia Food Group on September 28, 2024 and sell it today you would earn a total of 287.00 from holding Jiajia Food Group or generate 149.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Jiajia Food Group |
| Huaxia Eye Hospital |
Jiajia Food and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Huaxia Eye
The main advantage of trading using opposite Jiajia Food and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Jiajia Food vs. AVIC Fund Management | Jiajia Food vs. Hefei Metalforming Mach | Jiajia Food vs. Ningbo Thermal Power | Jiajia Food vs. China Nonferrous Metal |
| Huaxia Eye vs. Liuzhou Chemical Industry | Huaxia Eye vs. North Huajin Chemical | Huaxia Eye vs. Liaoning Dingjide Petrochemical | Huaxia Eye vs. Guangzhou Jointas Chemical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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