Correlation Between Jiahe Foods and Guangzhou Seagull
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By analyzing existing cross correlation between Jiahe Foods Industry and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Jiahe Foods and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Guangzhou Seagull.
Diversification Opportunities for Jiahe Foods and Guangzhou Seagull
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Jiahe Foods and Guangzhou Seagull
Assuming the 90 days trading horizon Jiahe Foods is expected to generate 2.36 times less return on investment than Guangzhou Seagull. In addition to that, Jiahe Foods is 1.21 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.02 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.05 per unit of volatility. If you would invest 283.00 in Guangzhou Seagull Kitchen on October 12, 2024 and sell it today you would earn a total of 17.00 from holding Guangzhou Seagull Kitchen or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Jiahe Foods Industry |
| Guangzhou Seagull Kitchen |
Jiahe Foods and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Guangzhou Seagull
The main advantage of trading using opposite Jiahe Foods and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Jiahe Foods vs. Wonders Information | Jiahe Foods vs. Guangdong Shenglu Telecommunication | Jiahe Foods vs. Dawning Information Industry | Jiahe Foods vs. TianJin 712 Communication |
| Guangzhou Seagull vs. Jiahe Foods Industry | Guangzhou Seagull vs. Chongqing Changan Automobile | Guangzhou Seagull vs. Beijing Sanyuan Foods | Guangzhou Seagull vs. HaiXin Foods Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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