Correlation Between Hefei Metalforming and Jiahe Foods
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By analyzing existing cross correlation between Hefei Metalforming Mach and Jiahe Foods Industry, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Jiahe Foods.
Diversification Opportunities for Hefei Metalforming and Jiahe Foods
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hefei and Jiahe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 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 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 Hefei Metalforming i.e., Hefei Metalforming and Jiahe Foods go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Jiahe Foods
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.17 times more return on investment than Jiahe Foods. However, Hefei Metalforming is 1.17 times more volatile than Jiahe Foods Industry. It trades about 0.04 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.0 per unit of risk. If you would invest 796.00 in Hefei Metalforming Mach on December 27, 2024 and sell it today you would earn a total of 440.00 from holding Hefei Metalforming Mach or generate 55.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Jiahe Foods Industry
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Jiahe Foods Industry |
Hefei Metalforming and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Jiahe Foods
The main advantage of trading using opposite Hefei Metalforming and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. StarPower Semiconductor | Hefei Metalforming vs. Nexchip Semiconductor Corp | Hefei Metalforming vs. Lontium Semiconductor Corp | Hefei Metalforming vs. Thinkon Semiconductor Jinzhou |
| Jiahe Foods vs. Simei Media Co | Jiahe Foods vs. Sunwave Communications Co | Jiahe Foods vs. State Grid InformationCommunication | Jiahe Foods vs. Dingli Communications Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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