Correlation Between Jiahe Foods and Zhengzhou Coal
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By analyzing existing cross correlation between Jiahe Foods Industry and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Jiahe Foods and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Zhengzhou Coal.
Diversification Opportunities for Jiahe Foods and Zhengzhou Coal
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiahe and Zhengzhou is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Jiahe Foods and Zhengzhou Coal
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Zhengzhou Coal. In addition to that, Jiahe Foods is 3.52 times more volatile than Zhengzhou Coal Mining. It trades about -0.38 of its total potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about -0.14 per unit of volatility. If you would invest 1,293 in Zhengzhou Coal Mining on October 14, 2024 and sell it today you would lose (34.00) from holding Zhengzhou Coal Mining or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Jiahe Foods Industry |
| Zhengzhou Coal Mining |
Jiahe Foods and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Zhengzhou Coal
The main advantage of trading using opposite Jiahe Foods and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Jiahe Foods vs. Easyhome New Retail | Jiahe Foods vs. HeNan Splendor Science | Jiahe Foods vs. Bomesc Offshore Engineering | Jiahe Foods vs. Hua Xia Bank |
| Zhengzhou Coal vs. Shanghai Ziyan Foods | Zhengzhou Coal vs. Kuangda Technology Group | Zhengzhou Coal vs. Jiahe Foods Industry | Zhengzhou Coal vs. Linewell Software 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 Stocks Directory module to find actively traded stocks across global markets.
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