Correlation Between Jiahe Foods and AVCON Information
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By analyzing existing cross correlation between Jiahe Foods Industry and AVCON Information Tech, you can compare the effects of market volatilities on Jiahe Foods and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and AVCON Information.
Diversification Opportunities for Jiahe Foods and AVCON Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiahe and AVCON is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and AVCON Information go up and down completely randomly.
Pair Corralation between Jiahe Foods and AVCON Information
Assuming the 90 days trading horizon Jiahe Foods is expected to generate 10.31 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Jiahe Foods Industry is 1.44 times less risky than AVCON Information. It trades about 0.0 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 507.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 3.00 from holding AVCON Information Tech or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Jiahe Foods Industry vs. AVCON Information Tech
Performance |
| Timeline |
| Jiahe Foods Industry |
| AVCON Information Tech |
Jiahe Foods and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and AVCON Information
The main advantage of trading using opposite Jiahe Foods and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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