Correlation Between Jiahe Foods and Chengdu Spaceon
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By analyzing existing cross correlation between Jiahe Foods Industry and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Jiahe Foods and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Chengdu Spaceon.
Diversification Opportunities for Jiahe Foods and Chengdu Spaceon
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiahe and Chengdu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Jiahe Foods and Chengdu Spaceon
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Chengdu Spaceon. In addition to that, Jiahe Foods is 1.48 times more volatile than Chengdu Spaceon Electronics. It trades about -0.44 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.4 per unit of volatility. If you would invest 1,812 in Chengdu Spaceon Electronics on October 13, 2024 and sell it today you would lose (305.00) from holding Chengdu Spaceon Electronics or give up 16.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Jiahe Foods Industry |
| Chengdu Spaceon Elec |
Jiahe Foods and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Chengdu Spaceon
The main advantage of trading using opposite Jiahe Foods and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Jiahe Foods vs. Industrial and Commercial | Jiahe Foods vs. Agricultural Bank of | Jiahe Foods vs. China Construction Bank | Jiahe Foods vs. Bank of China |
| Chengdu Spaceon vs. Lutian Machinery Co | Chengdu Spaceon vs. Jiahe Foods Industry | Chengdu Spaceon vs. Jinlong Machinery Electronic | Chengdu Spaceon vs. Shenzhen Zhongzhuang Construction |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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