Correlation Between Jiahe Foods and Metro Investment
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By analyzing existing cross correlation between Jiahe Foods Industry and Metro Investment Development, you can compare the effects of market volatilities on Jiahe Foods and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Metro Investment.
Diversification Opportunities for Jiahe Foods and Metro Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Metro is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Metro Investment go up and down completely randomly.
Pair Corralation between Jiahe Foods and Metro Investment
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.29 times more return on investment than Metro Investment. However, Jiahe Foods is 1.29 times more volatile than Metro Investment Development. It trades about -0.14 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.26 per unit of risk. If you would invest 1,387 in Jiahe Foods Industry on November 3, 2024 and sell it today you would lose (112.00) from holding Jiahe Foods Industry or give up 8.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Metro Investment Development
Performance |
| Timeline |
| Jiahe Foods Industry |
| Metro Investment Dev |
Jiahe Foods and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Metro Investment
The main advantage of trading using opposite Jiahe Foods and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment'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 |
| Metro Investment vs. HaiXin Foods Co | Metro Investment vs. De Rucci Healthy | Metro Investment vs. Yankershop Food Co | Metro Investment vs. Guosheng Financial Holding |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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