Correlation Between China World and HUANLEJIA Food
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By analyzing existing cross correlation between China World Trade and HUANLEJIA Food Group, you can compare the effects of market volatilities on China World and HUANLEJIA 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 China World with a short position of HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and HUANLEJIA Food.
Diversification Opportunities for China World and HUANLEJIA Food
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and HUANLEJIA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and HUANLEJIA Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUANLEJIA Food Group and China World 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 China World Trade are associated (or correlated) with HUANLEJIA Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUANLEJIA Food Group has no effect on the direction of China World i.e., China World and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between China World and HUANLEJIA Food
Assuming the 90 days trading horizon China World is expected to generate 5.98 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, China World Trade is 5.36 times less risky than HUANLEJIA Food. It trades about 0.15 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,389 in HUANLEJIA Food Group on September 13, 2024 and sell it today you would earn a total of 355.00 from holding HUANLEJIA Food Group or generate 25.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. HUANLEJIA Food Group
Performance |
| Timeline |
| China World Trade |
| HUANLEJIA Food Group |
China World and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and HUANLEJIA Food
The main advantage of trading using opposite China World and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, HUANLEJIA 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 HUANLEJIA Food will offset losses from the drop in HUANLEJIA Food's long position.| China World vs. China Life Insurance | China World vs. Cinda Securities Co | China World vs. Piotech Inc A | China World vs. Dongxing Sec Co |
| HUANLEJIA Food vs. Zhejiang JIULI Hi tech | HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Tongling Nonferrous Metals | HUANLEJIA Food vs. Guangdong Jingyi Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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