Correlation Between Crown Advanced and Juewei Food
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By analyzing existing cross correlation between Crown Advanced Material and Juewei Food Co, you can compare the effects of market volatilities on Crown Advanced and Juewei Food 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 Crown Advanced with a short position of Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Advanced and Juewei Food.
Diversification Opportunities for Crown Advanced and Juewei Food
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crown and Juewei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Crown Advanced Material and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food and Crown Advanced 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 Crown Advanced Material are associated (or correlated) with Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Crown Advanced i.e., Crown Advanced and Juewei Food go up and down completely randomly.
Pair Corralation between Crown Advanced and Juewei Food
Assuming the 90 days trading horizon Crown Advanced Material is expected to under-perform the Juewei Food. But the stock apears to be less risky and, when comparing its historical volatility, Crown Advanced Material is 1.29 times less risky than Juewei Food. The stock trades about -0.26 of its potential returns per unit of risk. The Juewei Food Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,887 in Juewei Food Co on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Juewei Food Co or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Advanced Material vs. Juewei Food Co
Performance |
| Timeline |
| Crown Advanced Material |
| Juewei Food |
Crown Advanced and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Advanced and Juewei Food
The main advantage of trading using opposite Crown Advanced and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Advanced position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Crown Advanced vs. Zijin Mining Group | Crown Advanced vs. Wanhua Chemical Group | Crown Advanced vs. Baoshan Iron Steel | Crown Advanced vs. Shandong Gold Mining |
| Juewei Food vs. Uxi Unicomp Technology | Juewei Food vs. Kunshan Guoli Electronic | Juewei Food vs. Success Electronics | Juewei Food vs. ROPEOK Technology Group |
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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