Correlation Between Jiajia Food and Hangzhou Pinming
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By analyzing existing cross correlation between Jiajia Food Group and Hangzhou Pinming Software, you can compare the effects of market volatilities on Jiajia Food and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Hangzhou Pinming.
Diversification Opportunities for Jiajia Food and Hangzhou Pinming
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiajia and Hangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Jiajia Food i.e., Jiajia Food and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Jiajia Food and Hangzhou Pinming
Assuming the 90 days trading horizon Jiajia Food is expected to generate 5.89 times less return on investment than Hangzhou Pinming. But when comparing it to its historical volatility, Jiajia Food Group is 1.29 times less risky than Hangzhou Pinming. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,031 in Hangzhou Pinming Software on August 29, 2024 and sell it today you would earn a total of 707.00 from holding Hangzhou Pinming Software or generate 34.81% 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. Hangzhou Pinming Software
Performance |
| Timeline |
| Jiajia Food Group |
| Hangzhou Pinming Software |
Jiajia Food and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Hangzhou Pinming
The main advantage of trading using opposite Jiajia Food and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
| Hangzhou Pinming vs. China State Construction | Hangzhou Pinming vs. Huafa Industrial Co | Hangzhou Pinming vs. China International Capital | Hangzhou Pinming vs. Kweichow Moutai Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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