Correlation Between Jiahe Foods and Zhejiang Juhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiahe Foods Industry and Zhejiang Juhua Co, you can compare the effects of market volatilities on Jiahe Foods and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Zhejiang Juhua.
Diversification Opportunities for Jiahe Foods and Zhejiang Juhua
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiahe and Zhejiang is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Jiahe Foods and Zhejiang Juhua
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Zhejiang Juhua. In addition to that, Jiahe Foods is 1.43 times more volatile than Zhejiang Juhua Co. It trades about -0.15 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.16 per unit of volatility. If you would invest 2,237 in Zhejiang Juhua Co on October 30, 2024 and sell it today you would earn a total of 330.00 from holding Zhejiang Juhua Co or generate 14.75% 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. Zhejiang Juhua Co
Performance |
| Timeline |
| Jiahe Foods Industry |
| Zhejiang Juhua |
Jiahe Foods and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Zhejiang Juhua
The main advantage of trading using opposite Jiahe Foods and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Jiahe Foods vs. Allwin Telecommunication Co | Jiahe Foods vs. Markor International Home | Jiahe Foods vs. Luolai Home Textile | Jiahe Foods vs. Shandong Homey Aquatic |
| Zhejiang Juhua vs. Dawning Information Industry | Zhejiang Juhua vs. Tongding Interconnection Information | Zhejiang Juhua vs. Ningbo Kangqiang Electronics | Zhejiang Juhua vs. TongFu Microelectronics Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |