Correlation Between Jiajia Food and V V
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By analyzing existing cross correlation between Jiajia Food Group and V V Food, you can compare the effects of market volatilities on Jiajia Food and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and V V.
Diversification Opportunities for Jiajia Food and V V
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiajia and 600300 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Jiajia Food i.e., Jiajia Food and V V go up and down completely randomly.
Pair Corralation between Jiajia Food and V V
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 2.33 times more return on investment than V V. However, Jiajia Food is 2.33 times more volatile than V V Food. It trades about 0.3 of its potential returns per unit of risk. V V Food is currently generating about 0.06 per unit of risk. If you would invest 306.00 in Jiajia Food Group on August 29, 2024 and sell it today you would earn a total of 96.00 from holding Jiajia Food Group or generate 31.37% 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. V V Food
Performance |
| Timeline |
| Jiajia Food Group |
| V V Food |
Jiajia Food and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and V V
The main advantage of trading using opposite Jiajia Food and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, V V 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 V V will offset losses from the drop in V V'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 |
| V V vs. China Petroleum Chemical | V V vs. PetroChina Co Ltd | V V vs. China State Construction | V V vs. China Railway Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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