Correlation Between Jiajia Food and Ming Yang
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By analyzing existing cross correlation between Jiajia Food Group and Ming Yang Smart, you can compare the effects of market volatilities on Jiajia Food and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Ming Yang.
Diversification Opportunities for Jiajia Food and Ming Yang
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Ming is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Jiajia Food i.e., Jiajia Food and Ming Yang go up and down completely randomly.
Pair Corralation between Jiajia Food and Ming Yang
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.39 times more return on investment than Ming Yang. However, Jiajia Food is 1.39 times more volatile than Ming Yang Smart. It trades about -0.05 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.56 per unit of risk. If you would invest 472.00 in Jiajia Food Group on October 12, 2024 and sell it today you would lose (20.00) from holding Jiajia Food Group or give up 4.24% 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. Ming Yang Smart
Performance |
| Timeline |
| Jiajia Food Group |
| Ming Yang Smart |
Jiajia Food and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Ming Yang
The main advantage of trading using opposite Jiajia Food and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Jiajia Food vs. CareRay Digital Medical | Jiajia Food vs. Nanjing Vishee Medical | Jiajia Food vs. Kidswant Children Products | Jiajia Food vs. Sichuan Yahua Industrial |
| Ming Yang vs. Guangdong Qunxing Toys | Ming Yang vs. Jinzai Food Group | Ming Yang vs. Anhui Transport Consulting | Ming Yang vs. Jiajia Food 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 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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