Correlation Between Jiahe Foods and Huitong Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiahe Foods Industry and Huitong Construction Group, you can compare the effects of market volatilities on Jiahe Foods and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Huitong Construction.
Diversification Opportunities for Jiahe Foods and Huitong Construction
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Huitong is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Huitong Construction go up and down completely randomly.
Pair Corralation between Jiahe Foods and Huitong Construction
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 1.15 times more return on investment than Huitong Construction. However, Jiahe Foods is 1.15 times more volatile than Huitong Construction Group. It trades about 0.2 of its potential returns per unit of risk. Huitong Construction Group is currently generating about 0.17 per unit of risk. If you would invest 1,105 in Jiahe Foods Industry on September 2, 2024 and sell it today you would earn a total of 496.00 from holding Jiahe Foods Industry or generate 44.89% 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. Huitong Construction Group
Performance |
| Timeline |
| Jiahe Foods Industry |
| Huitong Construction |
Jiahe Foods and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Huitong Construction
The main advantage of trading using opposite Jiahe Foods and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Shenzhen Hifuture Electric | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Shenyang Huitian Thermal |
| Huitong Construction vs. Jiahe Foods Industry | Huitong Construction vs. By health | Huitong Construction vs. Sichuan Teway Food | Huitong Construction vs. De Rucci Healthy |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |