Correlation Between Jiajia Food and Nexchip Semiconductor
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By analyzing existing cross correlation between Jiajia Food Group and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Jiajia Food and Nexchip 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 Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Nexchip Semiconductor.
Diversification Opportunities for Jiajia Food and Nexchip Semiconductor
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiajia and Nexchip is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip 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 Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Jiajia Food i.e., Jiajia Food and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Jiajia Food and Nexchip Semiconductor
Assuming the 90 days trading horizon Jiajia Food Group is expected to under-perform the Nexchip Semiconductor. In addition to that, Jiajia Food is 1.29 times more volatile than Nexchip Semiconductor Corp. It trades about -0.04 of its total potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.12 per unit of volatility. If you would invest 2,242 in Nexchip Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 88.00 from holding Nexchip Semiconductor Corp or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Jiajia Food Group |
| Nexchip Semiconductor |
Jiajia Food and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Nexchip Semiconductor
The main advantage of trading using opposite Jiajia Food and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| Jiajia Food vs. Shanghai Action Education | Jiajia Food vs. Qtone Education Group | Jiajia Food vs. Jiangsu Phoenix Publishing | Jiajia Food vs. Nanjing Putian Telecommunications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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