Correlation Between Juewei Food and DO Home
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By analyzing existing cross correlation between Juewei Food Co and DO Home Collection, you can compare the effects of market volatilities on Juewei Food and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and DO Home.
Diversification Opportunities for Juewei Food and DO Home
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juewei and 002798 is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Juewei Food i.e., Juewei Food and DO Home go up and down completely randomly.
Pair Corralation between Juewei Food and DO Home
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.3 times more return on investment than DO Home. However, Juewei Food is 1.3 times more volatile than DO Home Collection. It trades about 0.12 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 per unit of risk. If you would invest 1,820 in Juewei Food Co on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Juewei Food Co or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. DO Home Collection
Performance |
| Timeline |
| Juewei Food |
| DO Home Collection |
Juewei Food and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and DO Home
The main advantage of trading using opposite Juewei Food and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Juewei Food vs. Nanjing Putian Telecommunications | Juewei Food vs. Shenzhen Hifuture Electric | Juewei Food vs. Tianjin Realty Development | Juewei Food vs. Shenyang Huitian Thermal |
| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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