Correlation Between Hunya Foods and Jinli Group
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and Jinli Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hunya Foods and Jinli Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunya Foods Co and Jinli Group Holdings, you can compare the effects of market volatilities on Hunya Foods and Jinli Group 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 Hunya Foods with a short position of Jinli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and Jinli Group.
Diversification Opportunities for Hunya Foods and Jinli Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hunya and Jinli is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings and Hunya Foods 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 Hunya Foods Co are associated (or correlated) with Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of Hunya Foods i.e., Hunya Foods and Jinli Group go up and down completely randomly.
Pair Corralation between Hunya Foods and Jinli Group
Assuming the 90 days trading horizon Hunya Foods Co is expected to under-perform the Jinli Group. But the stock apears to be less risky and, when comparing its historical volatility, Hunya Foods Co is 4.04 times less risky than Jinli Group. The stock trades about -0.04 of its potential returns per unit of risk. The Jinli Group Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Jinli Group Holdings on August 30, 2024 and sell it today you would earn a total of 105.00 from holding Jinli Group Holdings or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. Jinli Group Holdings
Performance |
| Timeline |
| Hunya Foods |
| Jinli Group Holdings |
Hunya Foods and Jinli Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and Jinli Group
The main advantage of trading using opposite Hunya Foods and Jinli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, Jinli Group 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 Jinli Group will offset losses from the drop in Jinli Group's long position.| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial Co |
| Jinli Group vs. Shui Mu International Co | Jinli Group vs. Les Enphants Co | Jinli Group vs. Victory New Materials | Jinli Group vs. Shinih Enterprise 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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