Correlation Between Jiahe Foods and Shanghai Yaoji
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By analyzing existing cross correlation between Jiahe Foods Industry and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Jiahe Foods and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Shanghai Yaoji.
Diversification Opportunities for Jiahe Foods and Shanghai Yaoji
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Jiahe Foods and Shanghai Yaoji
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Jiahe Foods Industry is 1.35 times less risky than Shanghai Yaoji. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,491 in Shanghai Yaoji Playing on October 25, 2024 and sell it today you would earn a total of 1,149 from holding Shanghai Yaoji Playing or generate 77.06% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Jiahe Foods Industry |
| Shanghai Yaoji Playing |
Jiahe Foods and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Shanghai Yaoji
The main advantage of trading using opposite Jiahe Foods and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Jiahe Foods vs. Zhongrun Resources Investment | Jiahe Foods vs. ZYF Lopsking Aluminum | Jiahe Foods vs. China Asset Management | Jiahe Foods vs. Hefei Metalforming Mach |
| Shanghai Yaoji vs. PetroChina Co Ltd | Shanghai Yaoji vs. Gansu Jiu Steel | Shanghai Yaoji vs. Ming Yang Smart | Shanghai Yaoji vs. Aba Chemicals Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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