Correlation Between Fushun Special and Jiahe Foods
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By analyzing existing cross correlation between Fushun Special Steel and Jiahe Foods Industry, you can compare the effects of market volatilities on Fushun Special 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 Fushun Special with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fushun Special and Jiahe Foods.
Diversification Opportunities for Fushun Special and Jiahe Foods
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fushun and Jiahe is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fushun Special Steel 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 Fushun Special 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 Fushun Special Steel 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 Fushun Special i.e., Fushun Special and Jiahe Foods go up and down completely randomly.
Pair Corralation between Fushun Special and Jiahe Foods
Assuming the 90 days trading horizon Fushun Special Steel is expected to under-perform the Jiahe Foods. But the stock apears to be less risky and, when comparing its historical volatility, Fushun Special Steel is 1.63 times less risky than Jiahe Foods. The stock trades about -0.09 of its potential returns per unit of risk. The Jiahe Foods Industry is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Jiahe Foods Industry on September 2, 2024 and sell it today you would earn a total of 438.00 from holding Jiahe Foods Industry or generate 37.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fushun Special Steel vs. Jiahe Foods Industry
Performance |
| Timeline |
| Fushun Special Steel |
| Jiahe Foods Industry |
Fushun Special and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fushun Special and Jiahe Foods
The main advantage of trading using opposite Fushun Special and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fushun Special 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.| Fushun Special vs. HeBei Jinniu Chemical | Fushun Special vs. Dongnan Electronics Co | Fushun Special vs. Yangmei Chemical Co | Fushun Special vs. Longxing Chemical Stock |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Shenzhen Hifuture Electric | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Shenyang Huitian Thermal |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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