Correlation Between Hangzhou Guotai and Jiahe Foods
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Jiahe Foods Industry, you can compare the effects of market volatilities on Hangzhou Guotai 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 Hangzhou Guotai with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Jiahe Foods.
Diversification Opportunities for Hangzhou Guotai and Jiahe Foods
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hangzhou and Jiahe is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental 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 Hangzhou Guotai 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 Hangzhou Guotai Environmental 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 Hangzhou Guotai i.e., Hangzhou Guotai and Jiahe Foods go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Jiahe Foods
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.94 times more return on investment than Jiahe Foods. However, Hangzhou Guotai Environmental is 1.07 times less risky than Jiahe Foods. It trades about 0.18 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.14 per unit of risk. If you would invest 2,902 in Hangzhou Guotai Environmental on November 3, 2024 and sell it today you would earn a total of 268.00 from holding Hangzhou Guotai Environmental or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Jiahe Foods Industry
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Jiahe Foods Industry |
Hangzhou Guotai and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Jiahe Foods
The main advantage of trading using opposite Hangzhou Guotai and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai 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.| Hangzhou Guotai vs. Shengda Mining Co | Hangzhou Guotai vs. Zhejiang Yongjin Metal | Hangzhou Guotai vs. Chongqing Brewery Co | Hangzhou Guotai vs. Western Metal Materials |
| Jiahe Foods vs. Beijing Seeyon Internet | Jiahe Foods vs. Offshore Oil Engineering | Jiahe Foods vs. Maxvision Technology Corp | Jiahe Foods vs. Strait Innovation Internet |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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