Correlation Between Jiajia Food and Guilin Seamild
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By analyzing existing cross correlation between Jiajia Food Group and Guilin Seamild Foods, you can compare the effects of market volatilities on Jiajia Food and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Guilin Seamild.
Diversification Opportunities for Jiajia Food and Guilin Seamild
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Guilin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Jiajia Food i.e., Jiajia Food and Guilin Seamild go up and down completely randomly.
Pair Corralation between Jiajia Food and Guilin Seamild
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.25 times more return on investment than Guilin Seamild. However, Jiajia Food is 1.25 times more volatile than Guilin Seamild Foods. It trades about 0.23 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.14 per unit of risk. If you would invest 291.00 in Jiajia Food Group on October 25, 2024 and sell it today you would earn a total of 187.00 from holding Jiajia Food Group or generate 64.26% 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. Guilin Seamild Foods
Performance |
| Timeline |
| Jiajia Food Group |
| Guilin Seamild Foods |
Jiajia Food and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Guilin Seamild
The main advantage of trading using opposite Jiajia Food and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Jiajia Food vs. Agricultural Bank of | Jiajia Food vs. Postal Savings Bank | Jiajia Food vs. Bank of Communications | Jiajia Food vs. China Merchants Bank |
| Guilin Seamild vs. Agricultural Bank of | Guilin Seamild vs. Postal Savings Bank | Guilin Seamild vs. Bank of Communications | Guilin Seamild vs. China Merchants Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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