Correlation Between Jiamei Food and Gan Yuan
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By analyzing existing cross correlation between Jiamei Food Packaging and Gan Yuan Foods, you can compare the effects of market volatilities on Jiamei Food and Gan Yuan 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 Jiamei Food with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and Gan Yuan.
Diversification Opportunities for Jiamei Food and Gan Yuan
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiamei and Gan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Jiamei 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 Jiamei Food Packaging are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Jiamei Food i.e., Jiamei Food and Gan Yuan go up and down completely randomly.
Pair Corralation between Jiamei Food and Gan Yuan
Assuming the 90 days trading horizon Jiamei Food is expected to generate 1.74 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Jiamei Food Packaging is 1.13 times less risky than Gan Yuan. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,771 in Gan Yuan Foods on November 3, 2024 and sell it today you would earn a total of 1,951 from holding Gan Yuan Foods or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. Gan Yuan Foods
Performance |
| Timeline |
| Jiamei Food Packaging |
| Gan Yuan Foods |
Jiamei Food and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and Gan Yuan
The main advantage of trading using opposite Jiamei Food and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
| Gan Yuan vs. Xinjiang Baodi Mining | Gan Yuan vs. Guangzhou Jointas Chemical | Gan Yuan vs. Ningbo Fujia Industrial | Gan Yuan vs. Shenzhen Noposion Agrochemicals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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