Correlation Between Hefei Metalforming and Jiajia Food
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By analyzing existing cross correlation between Hefei Metalforming Mach and Jiajia Food Group, you can compare the effects of market volatilities on Hefei Metalforming and Jiajia 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 Hefei Metalforming with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Jiajia Food.
Diversification Opportunities for Hefei Metalforming and Jiajia Food
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Jiajia is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Jiajia Food go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Jiajia Food
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 10.05 times less return on investment than Jiajia Food. In addition to that, Hefei Metalforming is 1.14 times more volatile than Jiajia Food Group. It trades about 0.0 of its total potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 per unit of volatility. If you would invest 473.00 in Jiajia Food Group on September 28, 2024 and sell it today you would earn a total of 6.00 from holding Jiajia Food Group or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Jiajia Food Group
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Jiajia Food Group |
Hefei Metalforming and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Jiajia Food
The main advantage of trading using opposite Hefei Metalforming and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Jiajia 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Hefei Metalforming vs. Thinkingdom Media Group | Hefei Metalforming vs. Sichuan Fulin Transportation | Hefei Metalforming vs. Shanghai Broadband Technology | Hefei Metalforming vs. Road Environment Technology |
| Jiajia Food vs. AVIC Fund Management | Jiajia Food vs. Hefei Metalforming Mach | Jiajia Food vs. Ningbo Thermal Power | Jiajia Food vs. China Nonferrous Metal |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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