Correlation Between Jiajia Food and Shanghai CEO
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By analyzing existing cross correlation between Jiajia Food Group and Shanghai CEO Environmental, you can compare the effects of market volatilities on Jiajia Food and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Shanghai CEO.
Diversification Opportunities for Jiajia Food and Shanghai CEO
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiajia and Shanghai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Jiajia Food i.e., Jiajia Food and Shanghai CEO go up and down completely randomly.
Pair Corralation between Jiajia Food and Shanghai CEO
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.14 times more return on investment than Shanghai CEO. However, Jiajia Food is 1.14 times more volatile than Shanghai CEO Environmental. It trades about 0.05 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.02 per unit of risk. If you would invest 362.00 in Jiajia Food Group on October 20, 2024 and sell it today you would earn a total of 113.00 from holding Jiajia Food Group or generate 31.22% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| Jiajia Food Group |
| Shanghai CEO Environ |
Jiajia Food and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and Shanghai CEO
The main advantage of trading using opposite Jiajia Food and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| Jiajia Food vs. Great Sun Foods Co | Jiajia Food vs. Shanghai Jinfeng Wine | Jiajia Food vs. Sichuan Teway Food | Jiajia Food vs. Jiugui Liquor Co |
| Shanghai CEO vs. Jahen Household Products | Shanghai CEO vs. Sanxiang Advanced Materials | Shanghai CEO vs. Jiahe Foods Industry | Shanghai CEO 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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