Correlation Between Jiajia Food and Shenzhen Clou
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By analyzing existing cross correlation between Jiajia Food Group and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Jiajia Food and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Shenzhen Clou.
Diversification Opportunities for Jiajia Food and Shenzhen Clou
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Jiajia Food i.e., Jiajia Food and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Jiajia Food and Shenzhen Clou
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.25 times more return on investment than Shenzhen Clou. However, Jiajia Food is 1.25 times more volatile than Shenzhen Clou Electronics. It trades about 0.25 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.18 per unit of risk. If you would invest 391.00 in Jiajia Food Group on September 5, 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 |
Jiajia Food Group vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Jiajia Food Group |
| Shenzhen Clou Electronics |
Jiajia Food and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Shenzhen Clou
The main advantage of trading using opposite Jiajia Food and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Jiajia Food vs. Poly Real Estate | Jiajia Food vs. China Vanke Co | Jiajia Food vs. China Merchants Shekou | Jiajia Food vs. Huafa Industrial Co |
| Shenzhen Clou vs. Jiajia Food Group | Shenzhen Clou vs. Xinhua Winshare Publishing | Shenzhen Clou vs. Beijing Sanyuan Foods | Shenzhen Clou vs. China Asset Management |
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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