Correlation Between Jiajia Food and Tianshan Aluminum
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By analyzing existing cross correlation between Jiajia Food Group and Tianshan Aluminum Group, you can compare the effects of market volatilities on Jiajia Food and Tianshan Aluminum 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 Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Tianshan Aluminum.
Diversification Opportunities for Jiajia Food and Tianshan Aluminum
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiajia and Tianshan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum 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 Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Jiajia Food i.e., Jiajia Food and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Jiajia Food and Tianshan Aluminum
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.22 times more return on investment than Tianshan Aluminum. However, Jiajia Food is 1.22 times more volatile than Tianshan Aluminum Group. It trades about 0.02 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 per unit of risk. If you would invest 442.00 in Jiajia Food Group on October 13, 2024 and sell it today you would earn a total of 11.00 from holding Jiajia Food Group or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Jiajia Food Group |
| Tianshan Aluminum |
Jiajia Food and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Tianshan Aluminum
The main advantage of trading using opposite Jiajia Food and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| Jiajia Food vs. Maoming Petro Chemical Shihua | Jiajia Food vs. Shandong Longquan Pipeline | Jiajia Food vs. Liuzhou Chemical Industry | Jiajia Food vs. Xiangtan Electrochemical Scientific |
| Tianshan Aluminum vs. Jiajia Food Group | Tianshan Aluminum vs. Fujian Oriental Silver | Tianshan Aluminum vs. Shanghai Ziyan Foods | Tianshan Aluminum vs. Guilin Seamild Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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