Correlation Between Highbroad Advanced and Jiajia Food
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By analyzing existing cross correlation between Highbroad Advanced Material and Jiajia Food Group, you can compare the effects of market volatilities on Highbroad Advanced and Jiajia Food 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 Highbroad Advanced with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highbroad Advanced and Jiajia Food.
Diversification Opportunities for Highbroad Advanced and Jiajia Food
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highbroad and Jiajia is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Highbroad Advanced Material and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group and Highbroad Advanced 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 Highbroad Advanced Material are associated (or correlated) with Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Highbroad Advanced i.e., Highbroad Advanced and Jiajia Food go up and down completely randomly.
Pair Corralation between Highbroad Advanced and Jiajia Food
Assuming the 90 days trading horizon Highbroad Advanced Material is expected to generate 1.51 times more return on investment than Jiajia Food. However, Highbroad Advanced is 1.51 times more volatile than Jiajia Food Group. It trades about 0.02 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 per unit of risk. If you would invest 1,431 in Highbroad Advanced Material on October 16, 2024 and sell it today you would lose (47.00) from holding Highbroad Advanced Material or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highbroad Advanced Material vs. Jiajia Food Group
Performance |
| Timeline |
| Highbroad Advanced |
| Jiajia Food Group |
Highbroad Advanced and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highbroad Advanced and Jiajia Food
The main advantage of trading using opposite Highbroad Advanced and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highbroad Advanced position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Highbroad Advanced vs. Anyang Iron Steel | Highbroad Advanced vs. Postal Savings Bank | Highbroad Advanced vs. Guosheng Financial Holding | Highbroad Advanced vs. Agricultural Bank of |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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