Correlation Between Jiajia Food and Shantou Wanshun
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By analyzing existing cross correlation between Jiajia Food Group and Shantou Wanshun Package, you can compare the effects of market volatilities on Jiajia Food and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Shantou Wanshun.
Diversification Opportunities for Jiajia Food and Shantou Wanshun
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Shantou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Jiajia Food i.e., Jiajia Food and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Jiajia Food and Shantou Wanshun
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.16 times more return on investment than Shantou Wanshun. However, Jiajia Food is 1.16 times more volatile than Shantou Wanshun Package. It trades about 0.58 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about 0.08 per unit of risk. If you would invest 264.00 in Jiajia Food Group on August 24, 2024 and sell it today you would earn a total of 174.00 from holding Jiajia Food Group or generate 65.91% 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. Shantou Wanshun Package
Performance |
| Timeline |
| Jiajia Food Group |
| Shantou Wanshun Package |
Jiajia Food and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Shantou Wanshun
The main advantage of trading using opposite Jiajia Food and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Jiajia Food vs. Nanjing Putian Telecommunications | Jiajia Food vs. Shenyang Huitian Thermal | Jiajia Food vs. Hubei Geoway Investment | Jiajia Food vs. Datang Telecom Technology |
| Shantou Wanshun vs. Hainan Mining Co | Shantou Wanshun vs. Xinjiang Baodi Mining | Shantou Wanshun vs. Qingdao Foods Co | Shantou Wanshun 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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