Correlation Between Jinzai Food and Guizhou Chanhen
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By analyzing existing cross correlation between Jinzai Food Group and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Jinzai Food and Guizhou Chanhen 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 Jinzai Food with a short position of Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinzai Food and Guizhou Chanhen.
Diversification Opportunities for Jinzai Food and Guizhou Chanhen
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinzai and Guizhou is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jinzai Food Group and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical and Jinzai 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 Jinzai Food Group are associated (or correlated) with Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Jinzai Food i.e., Jinzai Food and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Jinzai Food and Guizhou Chanhen
Assuming the 90 days trading horizon Jinzai Food Group is expected to generate 1.39 times more return on investment than Guizhou Chanhen. However, Jinzai Food is 1.39 times more volatile than Guizhou Chanhen Chemical. It trades about -0.01 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.05 per unit of risk. If you would invest 1,312 in Jinzai Food Group on October 11, 2024 and sell it today you would lose (23.00) from holding Jinzai Food Group or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinzai Food Group vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Jinzai Food Group |
| Guizhou Chanhen Chemical |
Jinzai Food and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinzai Food and Guizhou Chanhen
The main advantage of trading using opposite Jinzai Food and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinzai Food position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Jinzai Food vs. Guizhou Chanhen Chemical | Jinzai Food vs. Qijing Machinery | Jinzai Food vs. Guangzhou KDT Machinery | Jinzai Food vs. Lutian Machinery Co |
| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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