Correlation Between China Vanke and Jiajia Food
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By analyzing existing cross correlation between China Vanke Co and Jiajia Food Group, you can compare the effects of market volatilities on China Vanke and Jiajia 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 China Vanke with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Jiajia Food.
Diversification Opportunities for China Vanke and Jiajia Food
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jiajia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group and China Vanke 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 China Vanke Co are associated (or correlated) with Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of China Vanke i.e., China Vanke and Jiajia Food go up and down completely randomly.
Pair Corralation between China Vanke and Jiajia Food
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.23 times less risky than Jiajia Food. The stock trades about -0.01 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Jiajia Food Group on September 4, 2024 and sell it today you would earn a total of 68.00 from holding Jiajia Food Group or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Jiajia Food Group
Performance |
| Timeline |
| China Vanke |
| Jiajia Food Group |
China Vanke and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Jiajia Food
The main advantage of trading using opposite China Vanke and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Jiajia 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
| Jiajia Food vs. Poly Real Estate | Jiajia Food vs. China Vanke Co | Jiajia Food vs. China Merchants Shekou | Jiajia Food vs. Huafa Industrial Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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