Correlation Between Jiajia Food and Shanghai Action
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By analyzing existing cross correlation between Jiajia Food Group and Shanghai Action Education, you can compare the effects of market volatilities on Jiajia Food and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Shanghai Action.
Diversification Opportunities for Jiajia Food and Shanghai Action
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiajia and Shanghai is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Jiajia Food i.e., Jiajia Food and Shanghai Action go up and down completely randomly.
Pair Corralation between Jiajia Food and Shanghai Action
Assuming the 90 days trading horizon Jiajia Food Group is expected to under-perform the Shanghai Action. In addition to that, Jiajia Food is 1.38 times more volatile than Shanghai Action Education. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about -0.01 per unit of volatility. If you would invest 3,617 in Shanghai Action Education on November 1, 2024 and sell it today you would lose (64.00) from holding Shanghai Action Education or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Shanghai Action Education
Performance |
| Timeline |
| Jiajia Food Group |
| Shanghai Action Education |
Jiajia Food and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Shanghai Action
The main advantage of trading using opposite Jiajia Food and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action'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 |
| Shanghai Action vs. Gansu Huangtai Wine marketing | Shanghai Action vs. China World Trade | Shanghai Action vs. Guilin Seamild Foods | Shanghai Action vs. Shenzhen Clou Electronics |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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