Correlation Between Jiahe Foods and Guangdong Wens
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By analyzing existing cross correlation between Jiahe Foods Industry and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Jiahe Foods and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Guangdong Wens.
Diversification Opportunities for Jiahe Foods and Guangdong Wens
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiahe and Guangdong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Guangdong Wens go up and down completely randomly.
Pair Corralation between Jiahe Foods and Guangdong Wens
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.39 times more return on investment than Guangdong Wens. However, Jiahe Foods is 1.39 times more volatile than Guangdong Wens Foodstuff. It trades about 0.0 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 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 | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Jiahe Foods Industry |
| Guangdong Wens Foodstuff |
Jiahe Foods and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Guangdong Wens
The main advantage of trading using opposite Jiahe Foods and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' 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 |
| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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