Correlation Between Jiajia Food and China World
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By analyzing existing cross correlation between Jiajia Food Group and China World Trade, you can compare the effects of market volatilities on Jiajia Food and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and China World.
Diversification Opportunities for Jiajia Food and China World
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiajia and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Jiajia Food i.e., Jiajia Food and China World go up and down completely randomly.
Pair Corralation between Jiajia Food and China World
Assuming the 90 days trading horizon Jiajia Food is expected to generate 3.84 times less return on investment than China World. In addition to that, Jiajia Food is 1.99 times more volatile than China World Trade. It trades about 0.01 of its total potential returns per unit of risk. China World Trade is currently generating about 0.09 per unit of volatility. If you would invest 2,446 in China World Trade on November 1, 2024 and sell it today you would earn a total of 50.00 from holding China World Trade or generate 2.04% 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. China World Trade
Performance |
| Timeline |
| Jiajia Food Group |
| China World Trade |
Jiajia Food and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and China World
The main advantage of trading using opposite Jiajia Food and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Jiajia Food vs. Zoy Home Furnishing | Jiajia Food vs. Allmed Medical Products | Jiajia Food vs. Touchstone International Medical | Jiajia Food vs. Shandong Intco Medical |
| China World vs. New Hope Dairy | China World vs. Jiajia Food Group | China World vs. Hefei Metalforming Mach | China World vs. Guangdong Jingyi Metal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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