Correlation Between Jiahe Foods and Jiangsu Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiahe Foods Industry and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Jiahe Foods and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Jiangsu Seagull.
Diversification Opportunities for Jiahe Foods and Jiangsu Seagull
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiahe and Jiangsu is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Jiahe Foods i.e., Jiahe Foods and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Jiahe Foods and Jiangsu Seagull
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to under-perform the Jiangsu Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Jiahe Foods Industry is 1.42 times less risky than Jiangsu Seagull. The stock trades about -0.01 of its potential returns per unit of risk. The Jiangsu Seagull Cooling is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,012 in Jiangsu Seagull Cooling on November 8, 2024 and sell it today you would earn a total of 117.00 from holding Jiangsu Seagull Cooling or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Jiahe Foods Industry |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiangsu Seagull Cooling |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Jiahe Foods and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Jiangsu Seagull
The main advantage of trading using opposite Jiahe Foods and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.The idea behind Jiahe Foods Industry and Jiangsu Seagull Cooling pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |