Correlation Between Juewei Food and Invengo Information
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By analyzing existing cross correlation between Juewei Food Co and Invengo Information Technology, you can compare the effects of market volatilities on Juewei Food and Invengo Information 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 Juewei Food with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Invengo Information.
Diversification Opportunities for Juewei Food and Invengo Information
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Invengo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Juewei Food 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 Juewei Food Co are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Juewei Food i.e., Juewei Food and Invengo Information go up and down completely randomly.
Pair Corralation between Juewei Food and Invengo Information
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Invengo Information. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.07 times less risky than Invengo Information. The stock trades about -0.09 of its potential returns per unit of risk. The Invengo Information Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 599.00 in Invengo Information Technology on October 16, 2024 and sell it today you would lose (88.00) from holding Invengo Information Technology or give up 14.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Invengo Information Technology
Performance |
| Timeline |
| Juewei Food |
| Invengo Information |
Juewei Food and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Invengo Information
The main advantage of trading using opposite Juewei Food and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
| Invengo Information vs. Anhui Deli Household | Invengo Information vs. Techshine Electronics Co | Invengo Information vs. Marssenger Kitchenware Co | Invengo Information vs. Guocheng Mining Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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