Correlation Between Jiajia Food and Zhongjing Food
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By analyzing existing cross correlation between Jiajia Food Group and Zhongjing Food Co, you can compare the effects of market volatilities on Jiajia Food and Zhongjing Food 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 Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Zhongjing Food.
Diversification Opportunities for Jiajia Food and Zhongjing Food
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiajia and Zhongjing is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food 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 Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of Jiajia Food i.e., Jiajia Food and Zhongjing Food go up and down completely randomly.
Pair Corralation between Jiajia Food and Zhongjing Food
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.67 times more return on investment than Zhongjing Food. However, Jiajia Food is 1.67 times more volatile than Zhongjing Food Co. It trades about 0.04 of its potential returns per unit of risk. Zhongjing Food Co is currently generating about 0.06 per unit of risk. If you would invest 467.00 in Jiajia Food Group on November 4, 2024 and sell it today you would earn a total of 6.00 from holding Jiajia Food Group or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Zhongjing Food Co
Performance |
| Timeline |
| Jiajia Food Group |
| Zhongjing Food |
Jiajia Food and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Zhongjing Food
The main advantage of trading using opposite Jiajia Food and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| Jiajia Food vs. Ningbo Fangzheng Automobile | Jiajia Food vs. Qtone Education Group | Jiajia Food vs. Shaanxi Meineng Clean | Jiajia Food vs. Changjiang Publishing Media |
| Zhongjing Food vs. Maxvision Technology Corp | Zhongjing Food vs. Strait Innovation Internet | Zhongjing Food vs. ROPEOK Technology Group | Zhongjing Food vs. Tianjin Hi Tech Development |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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