Correlation Between Jiajia Food and Wanda Cinema
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By analyzing existing cross correlation between Jiajia Food Group and Wanda Cinema Line, you can compare the effects of market volatilities on Jiajia Food and Wanda Cinema 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 Wanda Cinema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Wanda Cinema.
Diversification Opportunities for Jiajia Food and Wanda Cinema
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and Wanda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Wanda Cinema Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanda Cinema Line 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 Wanda Cinema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanda Cinema Line has no effect on the direction of Jiajia Food i.e., Jiajia Food and Wanda Cinema go up and down completely randomly.
Pair Corralation between Jiajia Food and Wanda Cinema
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.3 times more return on investment than Wanda Cinema. However, Jiajia Food is 1.3 times more volatile than Wanda Cinema Line. It trades about 0.04 of its potential returns per unit of risk. Wanda Cinema Line is currently generating about 0.02 per unit of risk. If you would invest 424.00 in Jiajia Food Group on September 14, 2024 and sell it today you would earn a total of 92.00 from holding Jiajia Food Group or generate 21.7% 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. Wanda Cinema Line
Performance |
| Timeline |
| Jiajia Food Group |
| Wanda Cinema Line |
Jiajia Food and Wanda Cinema Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Wanda Cinema
The main advantage of trading using opposite Jiajia Food and Wanda Cinema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Wanda Cinema 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 Wanda Cinema will offset losses from the drop in Wanda Cinema's long position.| Jiajia Food vs. Nanjing Putian Telecommunications | Jiajia Food vs. Tianjin Realty Development | Jiajia Food vs. Kangyue Technology Co | Jiajia Food vs. Shenzhen Hifuture Electric |
| Wanda Cinema vs. Heren Health Co | Wanda Cinema vs. Qingdao Foods Co | Wanda Cinema vs. Jiajia Food Group | Wanda Cinema vs. Xinjiang Tianrun Dairy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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