Correlation Between Jiahe Foods and Tibet Huayu
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By analyzing existing cross correlation between Jiahe Foods Industry and Tibet Huayu Mining, you can compare the effects of market volatilities on Jiahe Foods and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Tibet Huayu.
Diversification Opportunities for Jiahe Foods and Tibet Huayu
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Tibet is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Tibet Huayu go up and down completely randomly.
Pair Corralation between Jiahe Foods and Tibet Huayu
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.61 times more return on investment than Tibet Huayu. However, Jiahe Foods is 1.61 times more volatile than Tibet Huayu Mining. It trades about 0.24 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.09 per unit of risk. If you would invest 1,244 in Jiahe Foods Industry on September 13, 2024 and sell it today you would earn a total of 323.00 from holding Jiahe Foods Industry or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Tibet Huayu Mining
Performance |
| Timeline |
| Jiahe Foods Industry |
| Tibet Huayu Mining |
Jiahe Foods and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Tibet Huayu
The main advantage of trading using opposite Jiahe Foods and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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