Correlation Between Huafa Industrial and Jiahe Foods
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By analyzing existing cross correlation between Huafa Industrial Co and Jiahe Foods Industry, you can compare the effects of market volatilities on Huafa Industrial 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 Huafa Industrial with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Jiahe Foods.
Diversification Opportunities for Huafa Industrial and Jiahe Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huafa and Jiahe is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co 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 Huafa Industrial 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 Huafa Industrial Co 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 Huafa Industrial i.e., Huafa Industrial and Jiahe Foods go up and down completely randomly.
Pair Corralation between Huafa Industrial and Jiahe Foods
Assuming the 90 days trading horizon Huafa Industrial is expected to generate 1.18 times less return on investment than Jiahe Foods. But when comparing it to its historical volatility, Huafa Industrial Co is 1.04 times less risky than Jiahe Foods. It trades about 0.0 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,613 in Jiahe Foods Industry on September 4, 2024 and sell it today you would lose (105.00) from holding Jiahe Foods Industry or give up 6.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Jiahe Foods Industry
Performance |
| Timeline |
| Huafa Industrial |
| Jiahe Foods Industry |
Huafa Industrial and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Jiahe Foods
The main advantage of trading using opposite Huafa Industrial and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial 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.| Huafa Industrial vs. Tongyu Communication | Huafa Industrial vs. Jiangsu Financial Leasing | Huafa Industrial vs. Iat Automobile Technology | Huafa Industrial vs. Agricultural Bank of |
| Jiahe Foods vs. Poly Real Estate | Jiahe Foods vs. China Vanke Co | Jiahe Foods vs. China Merchants Shekou | Jiahe Foods vs. Huafa Industrial Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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