Correlation Between Jiamei Food and Yoantion Industrial
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By analyzing existing cross correlation between Jiamei Food Packaging and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Jiamei Food and Yoantion Industrial 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 Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and Yoantion Industrial.
Diversification Opportunities for Jiamei Food and Yoantion Industrial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiamei and Yoantion is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial 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 Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of Jiamei Food i.e., Jiamei Food and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Jiamei Food and Yoantion Industrial
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to generate 1.18 times more return on investment than Yoantion Industrial. However, Jiamei Food is 1.18 times more volatile than Yoantion Industrial IncLtd. It trades about -0.05 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about -0.06 per unit of risk. If you would invest 347.00 in Jiamei Food Packaging on November 3, 2024 and sell it today you would lose (23.00) from holding Jiamei Food Packaging or give up 6.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. Yoantion Industrial IncLtd
Performance |
| Timeline |
| Jiamei Food Packaging |
| Yoantion Industrial |
Jiamei Food and Yoantion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and Yoantion Industrial
The main advantage of trading using opposite Jiamei Food and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial'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 |
| Yoantion Industrial vs. Citic Guoan Wine | Yoantion Industrial vs. Guangzhou KingTeller Technology | Yoantion Industrial vs. Juneyao Airlines | Yoantion Industrial vs. Linewell Software Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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