Correlation Between Jinhui Mining and Jiahe Foods
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By analyzing existing cross correlation between Jinhui Mining Co and Jiahe Foods Industry, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Jiahe Foods.
Diversification Opportunities for Jinhui Mining and Jiahe Foods
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Jiahe is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co 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 Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Jiahe Foods go up and down completely randomly.
Pair Corralation between Jinhui Mining and Jiahe Foods
Assuming the 90 days trading horizon Jinhui Mining Co is expected to under-perform the Jiahe Foods. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Mining Co is 3.23 times less risky than Jiahe Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Jiahe Foods Industry is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Jiahe Foods Industry on September 13, 2024 and sell it today you would earn a total of 323.00 from holding Jiahe Foods Industry or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Jiahe Foods Industry
Performance |
| Timeline |
| Jinhui Mining |
| Jiahe Foods Industry |
Jinhui Mining and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Jiahe Foods
The main advantage of trading using opposite Jinhui Mining and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Shandong Gold Mining |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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