Correlation Between Jiajia Food and Gan Yuan
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By analyzing existing cross correlation between Jiajia Food Group and Gan Yuan Foods, you can compare the effects of market volatilities on Jiajia Food and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Gan Yuan.
Diversification Opportunities for Jiajia Food and Gan Yuan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and Gan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Jiajia Food i.e., Jiajia Food and Gan Yuan go up and down completely randomly.
Pair Corralation between Jiajia Food and Gan Yuan
Assuming the 90 days trading horizon Jiajia Food is expected to generate 1.47 times less return on investment than Gan Yuan. In addition to that, Jiajia Food is 1.14 times more volatile than Gan Yuan Foods. It trades about 0.01 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of volatility. If you would invest 7,210 in Gan Yuan Foods on August 30, 2024 and sell it today you would earn a total of 633.00 from holding Gan Yuan Foods or generate 8.78% 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. Gan Yuan Foods
Performance |
| Timeline |
| Jiajia Food Group |
| Gan Yuan Foods |
Jiajia Food and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Gan Yuan
The main advantage of trading using opposite Jiajia Food and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
| Gan Yuan vs. PetroChina Co Ltd | Gan Yuan vs. China Mobile Limited | Gan Yuan vs. Ping An Insurance | Gan Yuan vs. China Petroleum Chemical |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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