Correlation Between Jiajia Food and Jiangnan Mould
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By analyzing existing cross correlation between Jiajia Food Group and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Jiajia Food and Jiangnan Mould 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 Jiajia Food with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Jiangnan Mould.
Diversification Opportunities for Jiajia Food and Jiangnan Mould
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and Jiangnan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Jiajia 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 Jiajia Food Group are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Jiajia Food i.e., Jiajia Food and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Jiajia Food and Jiangnan Mould
Assuming the 90 days trading horizon Jiajia Food is expected to generate 2.6 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, Jiajia Food Group is 1.02 times less risky than Jiangnan Mould. It trades about 0.01 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 511.00 in Jiangnan Mould Plastic on October 16, 2024 and sell it today you would earn a total of 152.00 from holding Jiangnan Mould Plastic or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Jiajia Food Group |
| Jiangnan Mould Plastic |
Jiajia Food and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Jiangnan Mould
The main advantage of trading using opposite Jiajia Food and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Jiajia Food vs. Jilin Jlu Communication | Jiajia Food vs. Bank of Communications | Jiajia Food vs. Aba Chemicals Corp | Jiajia Food vs. Ningxia Younglight Chemicals |
| Jiangnan Mould vs. Tianjin Ruixin Technology | Jiangnan Mould vs. 360 Security Technology | Jiangnan Mould vs. Eyebright Medical Technology | Jiangnan Mould vs. China Eastern Airlines |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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