Correlation Between Jiahe Foods and Jiangsu Seagull
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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
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Jiangsu is 0.68. 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 generate 1.48 times more return on investment than Jiangsu Seagull. However, Jiahe Foods is 1.48 times more volatile than Jiangsu Seagull Cooling. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.04 per unit of risk. If you would invest 1,244 in Jiahe Foods Industry on September 12, 2024 and sell it today you would earn a total of 242.00 from holding Jiahe Foods Industry or generate 19.45% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Jiahe Foods Industry |
| Jiangsu Seagull Cooling |
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.| Jiahe Foods vs. China Petroleum Chemical | Jiahe Foods vs. PetroChina Co Ltd | Jiahe Foods vs. China State Construction | Jiahe Foods vs. China Railway Group |
| Jiangsu Seagull vs. Agricultural Bank of | Jiangsu Seagull vs. Industrial and Commercial | Jiangsu Seagull vs. Bank of China | Jiangsu Seagull vs. PetroChina Co Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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