Correlation Between Jiahe Foods and Greattown Holdings
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By analyzing existing cross correlation between Jiahe Foods Industry and Greattown Holdings Ltd, you can compare the effects of market volatilities on Jiahe Foods and Greattown Holdings 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 Greattown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Greattown Holdings.
Diversification Opportunities for Jiahe Foods and Greattown Holdings
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Greattown is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Greattown Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greattown Holdings 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 Greattown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greattown Holdings has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Greattown Holdings go up and down completely randomly.
Pair Corralation between Jiahe Foods and Greattown Holdings
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Greattown Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Jiahe Foods Industry is 1.07 times less risky than Greattown Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The Greattown Holdings Ltd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Greattown Holdings Ltd on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Greattown Holdings Ltd or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Greattown Holdings Ltd
Performance |
| Timeline |
| Jiahe Foods Industry |
| Greattown Holdings |
Jiahe Foods and Greattown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Greattown Holdings
The main advantage of trading using opposite Jiahe Foods and Greattown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Greattown Holdings 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 Greattown Holdings will offset losses from the drop in Greattown Holdings' long position.| Jiahe Foods vs. China Petroleum Chemical | Jiahe Foods vs. PetroChina Co Ltd | Jiahe Foods vs. China State Construction | Jiahe Foods vs. China Railway Group |
| Greattown Holdings vs. Offshore Oil Engineering | Greattown Holdings vs. Jiugui Liquor Co | Greattown Holdings vs. Chahua Modern Housewares | Greattown Holdings vs. Dymatic Chemicals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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