Correlation Between Jiajia Food and Double Medical
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By analyzing existing cross correlation between Jiajia Food Group and Double Medical Technology, you can compare the effects of market volatilities on Jiajia Food and Double Medical 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 Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Double Medical.
Diversification Opportunities for Jiajia Food and Double Medical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Double is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology 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 Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Jiajia Food i.e., Jiajia Food and Double Medical go up and down completely randomly.
Pair Corralation between Jiajia Food and Double Medical
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 2.55 times more return on investment than Double Medical. However, Jiajia Food is 2.55 times more volatile than Double Medical Technology. It trades about 0.3 of its potential returns per unit of risk. Double Medical Technology is currently generating about -0.16 per unit of risk. If you would invest 354.00 in Jiajia Food Group on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Jiajia Food Group or generate 31.36% 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. Double Medical Technology
Performance |
| Timeline |
| Jiajia Food Group |
| Double Medical Technology |
Jiajia Food and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Double Medical
The main advantage of trading using opposite Jiajia Food and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Double Medical 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 Double Medical will offset losses from the drop in Double Medical's long position.| Jiajia Food vs. Anyang Iron Steel | Jiajia Food vs. Tianjin Capital Environmental | Jiajia Food vs. Lingyuan Iron Steel | Jiajia Food vs. Penyao Environmental Protection |
| Double Medical vs. Nanjing Putian Telecommunications | Double Medical vs. Shenzhen Hifuture Electric | Double Medical vs. Tianjin Realty Development | Double Medical vs. Shenyang Huitian Thermal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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