Correlation Between Jiamei Food and Heilongjiang Transport
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By analyzing existing cross correlation between Jiamei Food Packaging and Heilongjiang Transport Development, you can compare the effects of market volatilities on Jiamei Food and Heilongjiang Transport 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 Jiamei Food with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and Heilongjiang Transport.
Diversification Opportunities for Jiamei Food and Heilongjiang Transport
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiamei and Heilongjiang is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Jiamei 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 Jiamei Food Packaging are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Jiamei Food i.e., Jiamei Food and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Jiamei Food and Heilongjiang Transport
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Jiamei Food Packaging is 1.56 times less risky than Heilongjiang Transport. The stock trades about -0.01 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Heilongjiang Transport Development on August 27, 2024 and sell it today you would earn a total of 59.00 from holding Heilongjiang Transport Development or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Jiamei Food Packaging |
| Heilongjiang Transport |
Jiamei Food and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and Heilongjiang Transport
The main advantage of trading using opposite Jiamei Food and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. China Construction Bank | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Bank of China |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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