Correlation Between Jiahe Foods and Sinofibers Technology
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By analyzing existing cross correlation between Jiahe Foods Industry and Sinofibers Technology Co, you can compare the effects of market volatilities on Jiahe Foods and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Sinofibers Technology.
Diversification Opportunities for Jiahe Foods and Sinofibers Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiahe and Sinofibers is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Jiahe Foods and Sinofibers Technology
Assuming the 90 days trading horizon Jiahe Foods is expected to generate 2.72 times less return on investment than Sinofibers Technology. But when comparing it to its historical volatility, Jiahe Foods Industry is 1.11 times less risky than Sinofibers Technology. It trades about 0.03 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,109 in Sinofibers Technology Co on October 18, 2024 and sell it today you would earn a total of 585.00 from holding Sinofibers Technology Co or generate 27.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Sinofibers Technology Co
Performance |
| Timeline |
| Jiahe Foods Industry |
| Sinofibers Technology |
Jiahe Foods and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Sinofibers Technology
The main advantage of trading using opposite Jiahe Foods and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Jiahe Foods vs. Xiwang Foodstuffs Co | Jiahe Foods vs. Eastroc Beverage Group | Jiahe Foods vs. Ligao Foods CoLtd | Jiahe Foods vs. Youyou Foods Co |
| Sinofibers Technology vs. Guangdong Wens Foodstuff | Sinofibers Technology vs. Hainan Haiqi Transportation | Sinofibers Technology vs. Jiahe Foods Industry | Sinofibers Technology vs. China Sports Industry |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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