Correlation Between Guangdong Silvere and Jiahe Foods
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By analyzing existing cross correlation between Guangdong Silvere Sci and Jiahe Foods Industry, you can compare the effects of market volatilities on Guangdong Silvere and Jiahe Foods 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 Guangdong Silvere with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Jiahe Foods.
Diversification Opportunities for Guangdong Silvere and Jiahe Foods
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jiahe is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry and Guangdong Silvere 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 Guangdong Silvere Sci are associated (or correlated) with Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Jiahe Foods go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Jiahe Foods
Assuming the 90 days trading horizon Guangdong Silvere is expected to generate 5.26 times less return on investment than Jiahe Foods. But when comparing it to its historical volatility, Guangdong Silvere Sci is 1.72 times less risky than Jiahe Foods. It trades about 0.08 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Jiahe Foods Industry on September 13, 2024 and sell it today you would earn a total of 323.00 from holding Jiahe Foods Industry or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Jiahe Foods Industry
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Jiahe Foods Industry |
Guangdong Silvere and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Jiahe Foods
The main advantage of trading using opposite Guangdong Silvere and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Guangdong Silvere vs. Jiugui Liquor Co | Guangdong Silvere vs. Air China Ltd | Guangdong Silvere vs. Anhui Huaren Health | Guangdong Silvere vs. Shandong Sinoglory Health |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
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 Stocks Directory module to find actively traded stocks across global markets.
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