Correlation Between Jiahe Foods and Hunan Investment
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By analyzing existing cross correlation between Jiahe Foods Industry and Hunan Investment Group, you can compare the effects of market volatilities on Jiahe Foods and Hunan Investment 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 Jiahe Foods with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Hunan Investment.
Diversification Opportunities for Jiahe Foods and Hunan Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Hunan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Jiahe Foods 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 Jiahe Foods Industry are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Hunan Investment go up and down completely randomly.
Pair Corralation between Jiahe Foods and Hunan Investment
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Hunan Investment. In addition to that, Jiahe Foods is 1.49 times more volatile than Hunan Investment Group. It trades about -0.02 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about -0.03 per unit of volatility. If you would invest 527.00 in Hunan Investment Group on October 24, 2024 and sell it today you would lose (9.00) from holding Hunan Investment Group or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Hunan Investment Group
Performance |
| Timeline |
| Jiahe Foods Industry |
| Hunan Investment |
Jiahe Foods and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Hunan Investment
The main advantage of trading using opposite Jiahe Foods and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Jiahe Foods vs. CICC Fund Management | Jiahe Foods vs. China Minmetals Rare | Jiahe Foods vs. Pengxin International Mining | Jiahe Foods vs. Qingdao Choho Industrial |
| Hunan Investment vs. HeBei Jinniu Chemical | Hunan Investment vs. Miracll Chemicals Co | Hunan Investment vs. Guizhou Chanhen Chemical | Hunan Investment vs. Shannon Semiconductor Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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