Correlation Between Jiahe Foods and Jinhui Mining
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By analyzing existing cross correlation between Jiahe Foods Industry and Jinhui Mining Co, you can compare the effects of market volatilities on Jiahe Foods and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Jinhui Mining.
Diversification Opportunities for Jiahe Foods and Jinhui Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiahe and Jinhui is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Jinhui Mining go up and down completely randomly.
Pair Corralation between Jiahe Foods and Jinhui Mining
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 3.23 times more return on investment than Jinhui Mining. However, Jiahe Foods is 3.23 times more volatile than Jinhui Mining Co. It trades about 0.24 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.02 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Jinhui Mining Co
Performance |
| Timeline |
| Jiahe Foods Industry |
| Jinhui Mining |
Jiahe Foods and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Jinhui Mining
The main advantage of trading using opposite Jiahe Foods and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining'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 |
| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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