Correlation Between Guangdong Advertising and Jiajia Food
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By analyzing existing cross correlation between Guangdong Advertising Co and Jiajia Food Group, you can compare the effects of market volatilities on Guangdong Advertising 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 Guangdong Advertising with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Jiajia Food.
Diversification Opportunities for Guangdong Advertising and Jiajia Food
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiajia is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising 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 Guangdong Advertising 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 Guangdong Advertising 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 Guangdong Advertising i.e., Guangdong Advertising and Jiajia Food go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Jiajia Food
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to generate 1.36 times more return on investment than Jiajia Food. However, Guangdong Advertising is 1.36 times more volatile than Jiajia Food Group. It trades about 0.22 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.29 per unit of risk. If you would invest 620.00 in Guangdong Advertising Co on August 28, 2024 and sell it today you would earn a total of 178.00 from holding Guangdong Advertising Co or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Jiajia Food Group
Performance |
| Timeline |
| Guangdong Advertising |
| Jiajia Food Group |
Guangdong Advertising and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Jiajia Food
The main advantage of trading using opposite Guangdong Advertising and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising 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.| Guangdong Advertising vs. Industrial and Commercial | Guangdong Advertising vs. Agricultural Bank of | Guangdong Advertising vs. China Construction Bank | Guangdong Advertising vs. Bank of China |
| Jiajia Food vs. China Petroleum Chemical | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China State Construction | Jiajia Food vs. China Railway Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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