Correlation Between Jiajia Food and Fujian Newland
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By analyzing existing cross correlation between Jiajia Food Group and Fujian Newland Computer, you can compare the effects of market volatilities on Jiajia Food and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Fujian Newland.
Diversification Opportunities for Jiajia Food and Fujian Newland
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and Fujian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Jiajia Food i.e., Jiajia Food and Fujian Newland go up and down completely randomly.
Pair Corralation between Jiajia Food and Fujian Newland
Assuming the 90 days trading horizon Jiajia Food is expected to generate 5.57 times less return on investment than Fujian Newland. In addition to that, Jiajia Food is 1.07 times more volatile than Fujian Newland Computer. It trades about 0.01 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.05 per unit of volatility. If you would invest 1,288 in Fujian Newland Computer on August 29, 2024 and sell it today you would earn a total of 650.00 from holding Fujian Newland Computer or generate 50.47% 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. Fujian Newland Computer
Performance |
| Timeline |
| Jiajia Food Group |
| Fujian Newland Computer |
Jiajia Food and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Fujian Newland
The main advantage of trading using opposite Jiajia Food and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
| Fujian Newland vs. China State Construction | Fujian Newland vs. Huafa Industrial Co | Fujian Newland vs. China International Capital | Fujian Newland vs. Kweichow Moutai 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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