Correlation Between Jiajia Food and Sinomach Automobile
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By analyzing existing cross correlation between Jiajia Food Group and Sinomach Automobile Co, you can compare the effects of market volatilities on Jiajia Food and Sinomach 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Sinomach Automobile.
Diversification Opportunities for Jiajia Food and Sinomach Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Sinomach is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Jiajia Food i.e., Jiajia Food and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Jiajia Food and Sinomach Automobile
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 0.9 times more return on investment than Sinomach Automobile. However, Jiajia Food Group is 1.11 times less risky than Sinomach Automobile. It trades about 0.01 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of risk. If you would invest 435.00 in Jiajia Food Group on August 29, 2024 and sell it today you would lose (33.00) from holding Jiajia Food Group or give up 7.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Sinomach Automobile Co
Performance |
| Timeline |
| Jiajia Food Group |
| Sinomach Automobile |
Jiajia Food and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Sinomach Automobile
The main advantage of trading using opposite Jiajia Food and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Sinomach 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 Sinomach Automobile will offset losses from the drop in Sinomach 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 |
| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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