Correlation Between China Railway and Jiahe Foods
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By analyzing existing cross correlation between China Railway Group and Jiahe Foods Industry, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Jiahe Foods.
Diversification Opportunities for China Railway and Jiahe Foods
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Jiahe is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group 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 China Railway 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 Railway Group 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 China Railway i.e., China Railway and Jiahe Foods go up and down completely randomly.
Pair Corralation between China Railway and Jiahe Foods
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.46 times more return on investment than Jiahe Foods. However, China Railway Group is 2.18 times less risky than Jiahe Foods. It trades about -0.23 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.12 per unit of risk. If you would invest 636.00 in China Railway Group on October 21, 2024 and sell it today you would lose (43.00) from holding China Railway Group or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Jiahe Foods Industry
Performance |
| Timeline |
| China Railway Group |
| Jiahe Foods Industry |
China Railway and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Jiahe Foods
The main advantage of trading using opposite China Railway and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Zhejiang Yinlun Machinery | China Railway vs. Iat Automobile Technology | China Railway vs. Dongfeng Automobile Co | China Railway vs. Weichai Heavy Machinery |
| Jiahe Foods vs. Weichai Heavy Machinery | Jiahe Foods vs. Jahen Household Products | Jiahe Foods vs. Lutian Machinery Co | Jiahe Foods vs. Ningbo Construction 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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