Correlation Between HUANLEJIA Food and Zhejiang JIULI
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By analyzing existing cross correlation between HUANLEJIA Food Group and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on HUANLEJIA Food and Zhejiang JIULI 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 HUANLEJIA Food with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUANLEJIA Food and Zhejiang JIULI.
Diversification Opportunities for HUANLEJIA Food and Zhejiang JIULI
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUANLEJIA and Zhejiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HUANLEJIA Food Group and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and HUANLEJIA 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 HUANLEJIA Food Group are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of HUANLEJIA Food i.e., HUANLEJIA Food and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between HUANLEJIA Food and Zhejiang JIULI
Assuming the 90 days trading horizon HUANLEJIA Food Group is expected to generate 3.86 times more return on investment than Zhejiang JIULI. However, HUANLEJIA Food is 3.86 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.21 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.15 per unit of risk. If you would invest 1,389 in HUANLEJIA Food Group on September 13, 2024 and sell it today you would earn a total of 486.00 from holding HUANLEJIA Food Group or generate 34.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUANLEJIA Food Group vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| HUANLEJIA Food Group |
| Zhejiang JIULI Hi |
HUANLEJIA Food and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUANLEJIA Food and Zhejiang JIULI
The main advantage of trading using opposite HUANLEJIA Food and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUANLEJIA Food position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Shanghai Shuixing Home | HUANLEJIA Food vs. Guocheng Mining Co | HUANLEJIA Food vs. Ye Chiu Metal |
| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI vs. Shandong Gold Mining |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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