Correlation Between Industrial and Jiahe Foods
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By analyzing existing cross correlation between Industrial and Commercial and Jiahe Foods Industry, you can compare the effects of market volatilities on 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 Industrial with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Jiahe Foods.
Diversification Opportunities for Industrial and Jiahe Foods
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Industrial and Jiahe is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 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 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 Industrial i.e., Industrial and Jiahe Foods go up and down completely randomly.
Pair Corralation between Industrial and Jiahe Foods
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.46 times more return on investment than Jiahe Foods. However, Industrial and Commercial is 2.15 times less risky than Jiahe Foods. It trades about -0.13 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.08 per unit of risk. If you would invest 693.00 in Industrial and Commercial on October 27, 2024 and sell it today you would lose (26.00) from holding Industrial and Commercial or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Jiahe Foods Industry
Performance |
| Timeline |
| Industrial and Commercial |
| Jiahe Foods Industry |
Industrial and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Jiahe Foods
The main advantage of trading using opposite Industrial and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 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.| Industrial vs. Shandong Rike Chemical | Industrial vs. Maoming Petro Chemical Shihua | Industrial vs. Quectel Wireless Solutions | Industrial vs. China Eastern Airlines |
| Jiahe Foods vs. Kweichow Moutai Co | Jiahe Foods vs. Contemporary Amperex Technology | Jiahe Foods vs. G bits Network Technology | Jiahe Foods vs. Beijing Roborock Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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