Correlation Between Jiajia Food and Giantec Semiconductor
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By analyzing existing cross correlation between Jiajia Food Group and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Jiajia Food and Giantec Semiconductor 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 Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Giantec Semiconductor.
Diversification Opportunities for Jiajia Food and Giantec Semiconductor
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiajia and Giantec is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor 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 Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Jiajia Food i.e., Jiajia Food and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Jiajia Food and Giantec Semiconductor
Assuming the 90 days trading horizon Jiajia Food is expected to generate 3.72 times less return on investment than Giantec Semiconductor. But when comparing it to its historical volatility, Jiajia Food Group is 2.59 times less risky than Giantec Semiconductor. It trades about 0.19 of its potential returns per unit of risk. Giantec Semiconductor Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 5,481 in Giantec Semiconductor Corp on November 5, 2024 and sell it today you would earn a total of 1,383 from holding Giantec Semiconductor Corp or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Jiajia Food Group |
| Giantec Semiconductor |
Jiajia Food and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Giantec Semiconductor
The main advantage of trading using opposite Jiajia Food and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Giantec Semiconductor 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Jiajia Food vs. Ningbo Fangzheng Automobile | Jiajia Food vs. Qtone Education Group | Jiajia Food vs. Shaanxi Meineng Clean | Jiajia Food vs. Changjiang Publishing Media |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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