Correlation Between Anhui Gujing and Jiajia Food
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By analyzing existing cross correlation between Anhui Gujing Distillery and Jiajia Food Group, you can compare the effects of market volatilities on Anhui Gujing 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 Anhui Gujing with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jiajia Food.
Diversification Opportunities for Anhui Gujing and Jiajia Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Jiajia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery 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 Anhui Gujing 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 Anhui Gujing Distillery 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 Anhui Gujing i.e., Anhui Gujing and Jiajia Food go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jiajia Food
Assuming the 90 days trading horizon Anhui Gujing is expected to generate 20.83 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, Anhui Gujing Distillery is 1.62 times less risky than Jiajia Food. It trades about 0.02 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 354.00 in Jiajia Food Group on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Jiajia Food Group or generate 31.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Jiajia Food Group
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Jiajia Food Group |
Anhui Gujing and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Jiajia Food
The main advantage of trading using opposite Anhui Gujing and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing 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.| Anhui Gujing vs. Will Semiconductor Co | Anhui Gujing vs. Zhongtong Guomai Communication | Anhui Gujing vs. Wuhan Yangtze Communication | Anhui Gujing vs. GRINM Semiconductor Materials |
| Jiajia Food vs. Anyang Iron Steel | Jiajia Food vs. Tianjin Capital Environmental | Jiajia Food vs. Lingyuan Iron Steel | Jiajia Food vs. Penyao Environmental Protection |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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