Correlation Between JIAHUA STORES and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and SENECA FOODS-A 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 SENECA FOODS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and SENECA FOODS A, you can compare the effects of market volatilities on JIAHUA STORES and SENECA FOODS-A 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 SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and SENECA FOODS-A.
Diversification Opportunities for JIAHUA STORES and SENECA FOODS-A
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and SENECA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A 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 SENECA FOODS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between JIAHUA STORES and SENECA FOODS-A
If you would invest 5,500 in SENECA FOODS A on September 1, 2024 and sell it today you would earn a total of 950.00 from holding SENECA FOODS A or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. SENECA FOODS A
Performance |
| Timeline |
| JIAHUA STORES |
| SENECA FOODS A |
JIAHUA STORES and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and SENECA FOODS-A
The main advantage of trading using opposite JIAHUA STORES and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, SENECA FOODS-A 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 SENECA FOODS-A will offset losses from the drop in SENECA FOODS-A's long position.| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung AG |
| SENECA FOODS-A vs. SIVERS SEMICONDUCTORS AB | SENECA FOODS-A vs. Darden Restaurants | SENECA FOODS-A vs. Reliance Steel Aluminum | SENECA FOODS-A vs. Q2M Managementberatung AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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