Correlation Between China State and Jiahe Foods
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By analyzing existing cross correlation between China State Construction and Jiahe Foods Industry, you can compare the effects of market volatilities on China State 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 State with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Jiahe Foods.
Diversification Opportunities for China State and Jiahe Foods
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jiahe is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 State 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 State Construction 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 State i.e., China State and Jiahe Foods go up and down completely randomly.
Pair Corralation between China State and Jiahe Foods
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Jiahe Foods. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 3.53 times less risky than Jiahe Foods. The stock trades about -0.03 of its potential returns per unit of risk. The Jiahe Foods Industry is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Jiahe Foods Industry on September 12, 2024 and sell it today you would earn a total of 242.00 from holding Jiahe Foods Industry or generate 19.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Jiahe Foods Industry
Performance |
| Timeline |
| China State Construction |
| Jiahe Foods Industry |
China State and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Jiahe Foods
The main advantage of trading using opposite China State and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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 State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
| Jiahe Foods vs. China Petroleum Chemical | Jiahe Foods vs. PetroChina Co Ltd | Jiahe Foods vs. China State Construction | Jiahe Foods 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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