Correlation Between Jiahe Foods and Jiangsu Jinling
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By analyzing existing cross correlation between Jiahe Foods Industry and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Jiahe Foods and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Jiangsu Jinling.
Diversification Opportunities for Jiahe Foods and Jiangsu Jinling
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Jiahe Foods and Jiangsu Jinling
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Jiangsu Jinling. In addition to that, Jiahe Foods is 1.15 times more volatile than Jiangsu Jinling Sports. It trades about -0.14 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.05 per unit of volatility. If you would invest 1,264 in Jiangsu Jinling Sports on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Jiangsu Jinling Sports or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Jiahe Foods Industry |
| Jiangsu Jinling Sports |
Jiahe Foods and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Jiangsu Jinling
The main advantage of trading using opposite Jiahe Foods and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Jiahe Foods vs. Beijing Seeyon Internet | Jiahe Foods vs. Offshore Oil Engineering | Jiahe Foods vs. Maxvision Technology Corp | Jiahe Foods vs. Strait Innovation Internet |
| Jiangsu Jinling vs. Anhui Shiny Electronic | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Peoples Insurance of | Jiangsu Jinling vs. Lecron Energy Saving |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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