Correlation Between Jiajia Food and Suzhou Xingye
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By analyzing existing cross correlation between Jiajia Food Group and Suzhou Xingye Material, you can compare the effects of market volatilities on Jiajia Food and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Suzhou Xingye.
Diversification Opportunities for Jiajia Food and Suzhou Xingye
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and Suzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Jiajia Food i.e., Jiajia Food and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Jiajia Food and Suzhou Xingye
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 0.98 times more return on investment than Suzhou Xingye. However, Jiajia Food Group is 1.02 times less risky than Suzhou Xingye. It trades about 0.01 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.01 per unit of risk. If you would invest 442.00 in Jiajia Food Group on October 16, 2024 and sell it today you would lose (6.00) from holding Jiajia Food Group or give up 1.36% 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. Suzhou Xingye Material
Performance |
| Timeline |
| Jiajia Food Group |
| Suzhou Xingye Material |
Jiajia Food and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Suzhou Xingye
The main advantage of trading using opposite Jiajia Food and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Jiajia Food vs. Jilin Jlu Communication | Jiajia Food vs. Bank of Communications | Jiajia Food vs. Aba Chemicals Corp | Jiajia Food vs. Ningxia Younglight Chemicals |
| Suzhou Xingye vs. Inspur Software Co | Suzhou Xingye vs. Shandong Hi Speed RoadBridge | Suzhou Xingye vs. Shaanxi Broadcast TV | Suzhou Xingye vs. Hangzhou Pinming Software |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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