Correlation Between Jiahe Foods and Shaanxi Meineng
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By analyzing existing cross correlation between Jiahe Foods Industry and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Jiahe Foods and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Shaanxi Meineng.
Diversification Opportunities for Jiahe Foods and Shaanxi Meineng
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Shaanxi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Jiahe Foods and Shaanxi Meineng
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Shaanxi Meineng. In addition to that, Jiahe Foods is 1.61 times more volatile than Shaanxi Meineng Clean. It trades about -0.15 of its total potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.11 per unit of volatility. If you would invest 1,382 in Shaanxi Meineng Clean on October 30, 2024 and sell it today you would lose (127.00) from holding Shaanxi Meineng Clean or give up 9.19% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Jiahe Foods Industry |
| Shaanxi Meineng Clean |
Jiahe Foods and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Shaanxi Meineng
The main advantage of trading using opposite Jiahe Foods and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng'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 |
| Shaanxi Meineng vs. Eastern Air Logistics | Shaanxi Meineng vs. Fuda Alloy Materials | Shaanxi Meineng vs. Yili Chuanning Biotechnology | Shaanxi Meineng vs. Harbin Air Conditioning |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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