Correlation Between JIAHUA STORES and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Dairy Farm at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JIAHUA STORES and Dairy Farm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Dairy Farm International, you can compare the effects of market volatilities on JIAHUA STORES and Dairy Farm 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 JIAHUA STORES with a short position of Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Dairy Farm.
Diversification Opportunities for JIAHUA STORES and Dairy Farm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Dairy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Dairy Farm go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Dairy Farm
If you would invest 216.00 in Dairy Farm International on October 13, 2024 and sell it today you would earn a total of 0.00 from holding Dairy Farm International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Dairy Farm International
Performance |
| Timeline |
| JIAHUA STORES |
| Dairy Farm International |
JIAHUA STORES and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Dairy Farm
The main advantage of trading using opposite JIAHUA STORES and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| JIAHUA STORES vs. NXP Semiconductors NV | JIAHUA STORES vs. ELMOS SEMICONDUCTOR | JIAHUA STORES vs. MagnaChip Semiconductor Corp | JIAHUA STORES vs. Universal Insurance Holdings |
| Dairy Farm vs. MARKET VECTR RETAIL | Dairy Farm vs. JIAHUA STORES | Dairy Farm vs. Gaming and Leisure | Dairy Farm vs. InPlay Oil Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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