Correlation Between Industrial and HUANLEJIA Food
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By analyzing existing cross correlation between Industrial and Commercial and HUANLEJIA Food Group, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of HUANLEJIA Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and HUANLEJIA Food.
Diversification Opportunities for Industrial and HUANLEJIA Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and HUANLEJIA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 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 Industrial and Commercial 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 Industrial i.e., Industrial and HUANLEJIA Food go up and down completely randomly.
Pair Corralation between Industrial and HUANLEJIA Food
Assuming the 90 days trading horizon Industrial is expected to generate 4.23 times less return on investment than HUANLEJIA Food. But when comparing it to its historical volatility, Industrial and Commercial is 8.63 times less risky than HUANLEJIA Food. It trades about 0.32 of its potential returns per unit of risk. HUANLEJIA Food Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,409 in HUANLEJIA Food Group on September 12, 2024 and sell it today you would earn a total of 335.00 from holding HUANLEJIA Food Group or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Industrial and Commercial vs. HUANLEJIA Food Group
Performance |
| Timeline |
| Industrial and Commercial |
| HUANLEJIA Food Group |
Industrial and HUANLEJIA Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and HUANLEJIA Food
The main advantage of trading using opposite Industrial and HUANLEJIA Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| HUANLEJIA Food vs. China Petroleum Chemical | HUANLEJIA Food vs. PetroChina Co Ltd | HUANLEJIA Food vs. China State Construction | HUANLEJIA Food vs. China Railway Group |
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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