Correlation Between Jiahe Foods and Gan Yuan
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By analyzing existing cross correlation between Jiahe Foods Industry and Gan Yuan Foods, you can compare the effects of market volatilities on Jiahe Foods and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Gan Yuan.
Diversification Opportunities for Jiahe Foods and Gan Yuan
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiahe and Gan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Gan Yuan go up and down completely randomly.
Pair Corralation between Jiahe Foods and Gan Yuan
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 0.73 times more return on investment than Gan Yuan. However, Jiahe Foods Industry is 1.37 times less risky than Gan Yuan. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about -0.04 per unit of risk. If you would invest 1,262 in Jiahe Foods Industry on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Jiahe Foods Industry or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Gan Yuan Foods
Performance |
| Timeline |
| Jiahe Foods Industry |
| Gan Yuan Foods |
Jiahe Foods and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Gan Yuan
The main advantage of trading using opposite Jiahe Foods and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Jiahe Foods vs. Invengo Information Technology | Jiahe Foods vs. Hongrun Construction Group | Jiahe Foods vs. Northking Information Technology | Jiahe Foods vs. Linzhou Heavy Machinery |
| Gan Yuan vs. Bus Online Co | Gan Yuan vs. Chengdu Xingrong Investment | Gan Yuan vs. Hunan Investment Group | Gan Yuan vs. Chison Medical Technologies |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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