Correlation Between Dawning Information and Jiahe Foods
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By analyzing existing cross correlation between Dawning Information Industry and Jiahe Foods Industry, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Jiahe Foods.
Diversification Opportunities for Dawning Information and Jiahe Foods
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawning and Jiahe is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Jiahe Foods go up and down completely randomly.
Pair Corralation between Dawning Information and Jiahe Foods
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 0.86 times more return on investment than Jiahe Foods. However, Dawning Information Industry is 1.16 times less risky than Jiahe Foods. It trades about -0.2 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.28 per unit of risk. If you would invest 7,494 in Dawning Information Industry on October 11, 2024 and sell it today you would lose (920.00) from holding Dawning Information Industry or give up 12.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Jiahe Foods Industry
Performance |
| Timeline |
| Dawning Information |
| Jiahe Foods Industry |
Dawning Information and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Jiahe Foods
The main advantage of trading using opposite Dawning Information and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Linewell Software Co | Dawning Information vs. Shuhua Sports Co | Dawning Information vs. XiaMen HongXin Electron tech | Dawning Information vs. Jinhe Biotechnology Co |
| Jiahe Foods vs. Wonders Information | Jiahe Foods vs. Guangdong Shenglu Telecommunication | Jiahe Foods vs. Dawning Information Industry | Jiahe Foods vs. TianJin 712 Communication |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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