Correlation Between Guangdong Wens and Jiahe Foods
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Jiahe Foods Industry, you can compare the effects of market volatilities on Guangdong Wens 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 Wens with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Jiahe Foods.
Diversification Opportunities for Guangdong Wens and Jiahe Foods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Jiahe is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff 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 Wens 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 Wens Foodstuff 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 Wens i.e., Guangdong Wens and Jiahe Foods go up and down completely randomly.
Pair Corralation between Guangdong Wens and Jiahe Foods
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Jiahe Foods. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.39 times less risky than Jiahe Foods. The stock trades about 0.0 of its potential returns per unit of risk. The Jiahe Foods Industry is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,711 in Jiahe Foods Industry on September 14, 2024 and sell it today you would lose (144.00) from holding Jiahe Foods Industry or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Jiahe Foods Industry
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Jiahe Foods Industry |
Guangdong Wens and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Jiahe Foods
The main advantage of trading using opposite Guangdong Wens and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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 Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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