Correlation Between Juewei Food and Hangzhou Gisway
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By analyzing existing cross correlation between Juewei Food Co and Hangzhou Gisway Information, you can compare the effects of market volatilities on Juewei Food and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Hangzhou Gisway.
Diversification Opportunities for Juewei Food and Hangzhou Gisway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juewei and Hangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Juewei Food i.e., Juewei Food and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Juewei Food and Hangzhou Gisway
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.23 times more return on investment than Hangzhou Gisway. However, Juewei Food is 1.23 times more volatile than Hangzhou Gisway Information. It trades about 0.22 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.14 per unit of risk. If you would invest 1,226 in Juewei Food Co on September 12, 2024 and sell it today you would earn a total of 804.00 from holding Juewei Food Co or generate 65.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Juewei Food |
| Hangzhou Gisway Info |
Juewei Food and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Hangzhou Gisway
The main advantage of trading using opposite Juewei Food and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Juewei Food vs. Nanjing Putian Telecommunications | Juewei Food vs. Tianjin Realty Development | Juewei Food vs. Kangyue Technology Co | Juewei Food vs. Shenzhen Hifuture Electric |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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