Correlation Between Jiajia Food and Iat Automobile
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By analyzing existing cross correlation between Jiajia Food Group and Iat Automobile Technology, you can compare the effects of market volatilities on Jiajia Food and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Iat Automobile.
Diversification Opportunities for Jiajia Food and Iat Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and Iat is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Jiajia Food i.e., Jiajia Food and Iat Automobile go up and down completely randomly.
Pair Corralation between Jiajia Food and Iat Automobile
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.15 times more return on investment than Iat Automobile. However, Jiajia Food is 1.15 times more volatile than Iat Automobile Technology. It trades about 0.36 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.13 per unit of risk. If you would invest 306.00 in Jiajia Food Group on August 27, 2024 and sell it today you would earn a total of 112.00 from holding Jiajia Food Group or generate 36.6% 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. Iat Automobile Technology
Performance |
| Timeline |
| Jiajia Food Group |
| Iat Automobile Technology |
Jiajia Food and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Iat Automobile
The main advantage of trading using opposite Jiajia Food and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Jiajia Food vs. China Petroleum Chemical | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China State Construction | Jiajia Food vs. China Railway Group |
| Iat Automobile vs. Loongson Technology Corp | Iat Automobile vs. Chongqing Road Bridge | Iat Automobile vs. Shenzhen Fortune Trend | Iat Automobile vs. Wuhan Xianglong Power |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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