Correlation Between Jiahe Foods and Bus Online
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By analyzing existing cross correlation between Jiahe Foods Industry and Bus Online Co, you can compare the effects of market volatilities on Jiahe Foods and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Bus Online.
Diversification Opportunities for Jiahe Foods and Bus Online
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Bus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Bus Online go up and down completely randomly.
Pair Corralation between Jiahe Foods and Bus Online
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 0.86 times more return on investment than Bus Online. However, Jiahe Foods Industry is 1.16 times less risky than Bus Online. It trades about -0.01 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.03 per unit of risk. If you would invest 1,529 in Jiahe Foods Industry on October 16, 2024 and sell it today you would lose (359.00) from holding Jiahe Foods Industry or give up 23.48% 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. Bus Online Co
Performance |
| Timeline |
| Jiahe Foods Industry |
| Bus Online |
Jiahe Foods and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Bus Online
The main advantage of trading using opposite Jiahe Foods and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Jiahe Foods vs. CITIC Guoan Information | Jiahe Foods vs. Arrow Home Group | Jiahe Foods vs. Digital China Information | Jiahe Foods vs. Everdisplay Optronics Shanghai |
| Bus Online vs. Fujian Longzhou Transportation | Bus Online vs. Great Sun Foods Co | Bus Online vs. Jiahe Foods Industry | Bus Online vs. Shuhua Sports 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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