Correlation Between Jiahe Foods and Shenyang Huitian
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By analyzing existing cross correlation between Jiahe Foods Industry and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Jiahe Foods and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Shenyang Huitian.
Diversification Opportunities for Jiahe Foods and Shenyang Huitian
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Shenyang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Jiahe Foods and Shenyang Huitian
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.11 times more return on investment than Shenyang Huitian. However, Jiahe Foods is 1.11 times more volatile than Shenyang Huitian Thermal. It trades about 0.04 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.0 per unit of risk. If you would invest 1,262 in Jiahe Foods Industry on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Jiahe Foods Industry or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Jiahe Foods Industry |
| Shenyang Huitian Thermal |
Jiahe Foods and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Shenyang Huitian
The main advantage of trading using opposite Jiahe Foods and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Jiahe Foods vs. Beijing Seeyon Internet | Jiahe Foods vs. Offshore Oil Engineering | Jiahe Foods vs. Maxvision Technology Corp | Jiahe Foods vs. Strait Innovation Internet |
| Shenyang Huitian vs. Yankershop Food Co | Shenyang Huitian vs. Everdisplay Optronics Shanghai | Shenyang Huitian vs. Changjiang Publishing Media | Shenyang Huitian vs. Guilin Seamild Foods |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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