Correlation Between Jiahe Foods and Digital China
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By analyzing existing cross correlation between Jiahe Foods Industry and Digital China Information, you can compare the effects of market volatilities on Jiahe Foods and Digital China 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 Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Digital China.
Diversification Opportunities for Jiahe Foods and Digital China
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Digital is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information 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 Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Digital China go up and down completely randomly.
Pair Corralation between Jiahe Foods and Digital China
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.04 times more return on investment than Digital China. However, Jiahe Foods is 1.04 times more volatile than Digital China Information. It trades about -0.04 of its potential returns per unit of risk. Digital China Information is currently generating about -0.13 per unit of risk. If you would invest 1,319 in Jiahe Foods Industry on October 30, 2024 and sell it today you would lose (44.00) from holding Jiahe Foods Industry or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Digital China Information
Performance |
| Timeline |
| Jiahe Foods Industry |
| Digital China Information |
Jiahe Foods and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Digital China
The main advantage of trading using opposite Jiahe Foods and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| Jiahe Foods vs. Allwin Telecommunication Co | Jiahe Foods vs. Markor International Home | Jiahe Foods vs. Luolai Home Textile | Jiahe Foods vs. Shandong Homey Aquatic |
| Digital China vs. Nanjing Putian Telecommunications | Digital China vs. Guangdong Qunxing Toys | Digital China vs. Quectel Wireless Solutions | Digital China vs. Elite Color Environmental |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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