Correlation Between Juewei Food and New Trend
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By analyzing existing cross correlation between Juewei Food Co and New Trend International, you can compare the effects of market volatilities on Juewei Food and New Trend 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 Juewei Food with a short position of New Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and New Trend.
Diversification Opportunities for Juewei Food and New Trend
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and New is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and New Trend International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Trend International and Juewei Food 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 Juewei Food Co are associated (or correlated) with New Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Trend International has no effect on the direction of Juewei Food i.e., Juewei Food and New Trend go up and down completely randomly.
Pair Corralation between Juewei Food and New Trend
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 0.89 times more return on investment than New Trend. However, Juewei Food Co is 1.12 times less risky than New Trend. It trades about 0.16 of its potential returns per unit of risk. New Trend International is currently generating about 0.1 per unit of risk. If you would invest 1,280 in Juewei Food Co on September 25, 2024 and sell it today you would earn a total of 595.00 from holding Juewei Food Co or generate 46.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Juewei Food Co vs. New Trend International
Performance |
Timeline |
Juewei Food |
New Trend International |
Juewei Food and New Trend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and New Trend
The main advantage of trading using opposite Juewei Food and New Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, New Trend 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 New Trend will offset losses from the drop in New Trend's long position.Juewei Food vs. Ming Yang Smart | Juewei Food vs. 159681 | Juewei Food vs. 159005 | Juewei Food vs. Loctek Ergonomic Technology |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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