Correlation Between Jiahe Foods and YLZ Information
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By analyzing existing cross correlation between Jiahe Foods Industry and YLZ Information Tech, you can compare the effects of market volatilities on Jiahe Foods and YLZ 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and YLZ Information.
Diversification Opportunities for Jiahe Foods and YLZ Information
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and YLZ is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and YLZ Information go up and down completely randomly.
Pair Corralation between Jiahe Foods and YLZ Information
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 0.65 times more return on investment than YLZ Information. However, Jiahe Foods Industry is 1.55 times less risky than YLZ Information. It trades about 0.0 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.03 per unit of risk. If you would invest 1,711 in Jiahe Foods Industry on September 14, 2024 and sell it today you would lose (144.00) from holding Jiahe Foods Industry or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. YLZ Information Tech
Performance |
| Timeline |
| Jiahe Foods Industry |
| YLZ Information Tech |
Jiahe Foods and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and YLZ Information
The main advantage of trading using opposite Jiahe Foods and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, YLZ 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 YLZ Information will offset losses from the drop in YLZ 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 |
| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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