Correlation Between Jiajia Food and GRINM Semiconductor
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By analyzing existing cross correlation between Jiajia Food Group and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Jiajia Food and GRINM 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 GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and GRINM Semiconductor.
Diversification Opportunities for Jiajia Food and GRINM Semiconductor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiajia and GRINM is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM 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 GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Jiajia Food i.e., Jiajia Food and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Jiajia Food and GRINM Semiconductor
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.3 times more return on investment than GRINM Semiconductor. However, Jiajia Food is 1.3 times more volatile than GRINM Semiconductor Materials. It trades about 0.3 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.0 per unit of risk. If you would invest 354.00 in Jiajia Food Group on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Jiajia Food Group or generate 31.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiajia Food Group vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Jiajia Food Group |
| GRINM Semiconductor |
Jiajia Food and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiajia Food and GRINM Semiconductor
The main advantage of trading using opposite Jiajia Food and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, GRINM 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.| Jiajia Food vs. Anyang Iron Steel | Jiajia Food vs. Tianjin Capital Environmental | Jiajia Food vs. Lingyuan Iron Steel | Jiajia Food vs. Penyao Environmental Protection |
| GRINM Semiconductor vs. Industrial and Commercial | GRINM Semiconductor vs. Kweichow Moutai Co | GRINM Semiconductor vs. Agricultural Bank of | GRINM Semiconductor vs. China Mobile Limited |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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