Correlation Between Tianjin Silvery and Jiahe Foods
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Jiahe Foods Industry, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Jiahe Foods.
Diversification Opportunities for Tianjin Silvery and Jiahe Foods
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianjin and Jiahe is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon 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 Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and Jiahe Foods go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Jiahe Foods
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.17 times more return on investment than Jiahe Foods. However, Tianjin Silvery is 1.17 times more volatile than Jiahe Foods Industry. It trades about 0.06 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.15 per unit of risk. If you would invest 589.00 in Tianjin Silvery Dragon on October 30, 2024 and sell it today you would earn a total of 42.00 from holding Tianjin Silvery Dragon or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Jiahe Foods Industry
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Jiahe Foods Industry |
Tianjin Silvery and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Jiahe Foods
The main advantage of trading using opposite Tianjin Silvery and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.| Tianjin Silvery vs. Bohai Leasing Co | Tianjin Silvery vs. Jiamei Food Packaging | Tianjin Silvery vs. Anji Foodstuff Co | Tianjin Silvery vs. Xinjiang Tianrun Dairy |
| Jiahe Foods vs. Allwin Telecommunication Co | Jiahe Foods vs. Markor International Home | Jiahe Foods vs. Luolai Home Textile | Jiahe Foods vs. Shandong Homey Aquatic |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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