Correlation Between Jiajia Food and Changsha DIALINE
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By analyzing existing cross correlation between Jiajia Food Group and Changsha DIALINE New, you can compare the effects of market volatilities on Jiajia Food and Changsha DIALINE 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 Changsha DIALINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Changsha DIALINE.
Diversification Opportunities for Jiajia Food and Changsha DIALINE
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiajia and Changsha is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Changsha DIALINE New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha DIALINE New 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 Changsha DIALINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha DIALINE New has no effect on the direction of Jiajia Food i.e., Jiajia Food and Changsha DIALINE go up and down completely randomly.
Pair Corralation between Jiajia Food and Changsha DIALINE
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 0.72 times more return on investment than Changsha DIALINE. However, Jiajia Food Group is 1.39 times less risky than Changsha DIALINE. It trades about 0.4 of its potential returns per unit of risk. Changsha DIALINE New is currently generating about 0.17 per unit of risk. If you would invest 205.00 in Jiajia Food Group on September 12, 2024 and sell it today you would earn a total of 260.00 from holding Jiajia Food Group or generate 126.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Jiajia Food Group vs. Changsha DIALINE New
Performance |
| Timeline |
| Jiajia Food Group |
| Changsha DIALINE New |
Jiajia Food and Changsha DIALINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Changsha DIALINE
The main advantage of trading using opposite Jiajia Food and Changsha DIALINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Changsha DIALINE 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 Changsha DIALINE will offset losses from the drop in Changsha DIALINE'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 |
| Changsha DIALINE vs. Liaoning Dingjide Petrochemical | Changsha DIALINE vs. Guangzhou Ruoyuchen Information | Changsha DIALINE vs. Daoming OpticsChemical Co | Changsha DIALINE vs. Westone Information Industry |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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