Correlation Between Jiahe Foods and Songz Automobile
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By analyzing existing cross correlation between Jiahe Foods Industry and Songz Automobile Air, you can compare the effects of market volatilities on Jiahe Foods and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Songz Automobile.
Diversification Opportunities for Jiahe Foods and Songz Automobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Songz is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Songz Automobile go up and down completely randomly.
Pair Corralation between Jiahe Foods and Songz Automobile
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Songz Automobile. In addition to that, Jiahe Foods is 1.42 times more volatile than Songz Automobile Air. It trades about -0.14 of its total potential returns per unit of risk. Songz Automobile Air is currently generating about 0.1 per unit of volatility. If you would invest 645.00 in Songz Automobile Air on November 3, 2024 and sell it today you would earn a total of 24.00 from holding Songz Automobile Air or generate 3.72% 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. Songz Automobile Air
Performance |
| Timeline |
| Jiahe Foods Industry |
| Songz Automobile Air |
Jiahe Foods and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Songz Automobile
The main advantage of trading using opposite Jiahe Foods and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile'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 |
| Songz Automobile vs. Yili Chuanning Biotechnology | Songz Automobile vs. Lander Sports Development | Songz Automobile vs. Sportsoul Co Ltd | Songz Automobile vs. Caihong Display Devices |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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