Correlation Between China Merchants and Jiajia Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Shekou and Jiajia Food Group, you can compare the effects of market volatilities on China Merchants 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 Merchants with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Jiajia Food.
Diversification Opportunities for China Merchants and Jiajia Food
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiajia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou 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 Merchants 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 Merchants Shekou 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 Merchants i.e., China Merchants and Jiajia Food go up and down completely randomly.
Pair Corralation between China Merchants and Jiajia Food
Assuming the 90 days trading horizon China Merchants is expected to generate 8.16 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, China Merchants Shekou is 1.62 times less risky than Jiajia Food. It trades about 0.05 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Jiajia Food Group on September 4, 2024 and sell it today you would earn a total of 101.00 from holding Jiajia Food Group or generate 25.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Jiajia Food Group
Performance |
| Timeline |
| China Merchants Shekou |
| Jiajia Food Group |
China Merchants and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Jiajia Food
The main advantage of trading using opposite China Merchants and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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 Merchants vs. Lander Sports Development | China Merchants vs. Chenzhou Jingui Silver | China Merchants vs. Sportsoul Co Ltd | China Merchants vs. Jiangxi Naipu Mining |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |