Correlation Between Jiahe Foods and Heilongjiang Transport
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By analyzing existing cross correlation between Jiahe Foods Industry and Heilongjiang Transport Development, you can compare the effects of market volatilities on Jiahe Foods and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Heilongjiang Transport.
Diversification Opportunities for Jiahe Foods and Heilongjiang Transport
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiahe and Heilongjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Jiahe Foods and Heilongjiang Transport
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 0.88 times more return on investment than Heilongjiang Transport. However, Jiahe Foods Industry is 1.14 times less risky than Heilongjiang Transport. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 per unit of risk. If you would invest 1,473 in Jiahe Foods Industry on September 14, 2024 and sell it today you would earn a total of 94.00 from holding Jiahe Foods Industry or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Jiahe Foods Industry |
| Heilongjiang Transport |
Jiahe Foods and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Heilongjiang Transport
The main advantage of trading using opposite Jiahe Foods and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport'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 |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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