Correlation Between Jiahe Foods and Gansu Yasheng
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By analyzing existing cross correlation between Jiahe Foods Industry and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Jiahe Foods and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Gansu Yasheng.
Diversification Opportunities for Jiahe Foods and Gansu Yasheng
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Gansu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Jiahe Foods and Gansu Yasheng
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.43 times more return on investment than Gansu Yasheng. However, Jiahe Foods is 1.43 times more volatile than Gansu Yasheng Industrial. It trades about -0.2 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.33 per unit of risk. If you would invest 1,447 in Jiahe Foods Industry on October 17, 2024 and sell it today you would lose (211.00) from holding Jiahe Foods Industry or give up 14.58% 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. Gansu Yasheng Industrial
Performance |
| Timeline |
| Jiahe Foods Industry |
| Gansu Yasheng Industrial |
Jiahe Foods and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Gansu Yasheng
The main advantage of trading using opposite Jiahe Foods and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Jiahe Foods vs. Cangzhou Mingzhu Plastic | Jiahe Foods vs. Songz Automobile Air | Jiahe Foods vs. Dongfeng Automobile Co | Jiahe Foods vs. Jiangnan Mould Plastic |
| Gansu Yasheng vs. Zhengzhou Qianweiyangchu Food | Gansu Yasheng vs. Jiahe Foods Industry | Gansu Yasheng vs. Hangzhou Guotai Environmental | Gansu Yasheng vs. Central Plains Environment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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