Correlation Between Jiamei Food and China Eastern
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By analyzing existing cross correlation between Jiamei Food Packaging and China Eastern Airlines, you can compare the effects of market volatilities on Jiamei Food and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and China Eastern.
Diversification Opportunities for Jiamei Food and China Eastern
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiamei and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Jiamei Food i.e., Jiamei Food and China Eastern go up and down completely randomly.
Pair Corralation between Jiamei Food and China Eastern
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to generate 1.23 times more return on investment than China Eastern. However, Jiamei Food is 1.23 times more volatile than China Eastern Airlines. It trades about 0.27 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.29 per unit of risk. If you would invest 327.00 in Jiamei Food Packaging on September 15, 2024 and sell it today you would earn a total of 35.00 from holding Jiamei Food Packaging or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. China Eastern Airlines
Performance |
| Timeline |
| Jiamei Food Packaging |
| China Eastern Airlines |
Jiamei Food and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and China Eastern
The main advantage of trading using opposite Jiamei Food and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern'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 |
| China Eastern vs. Sichuan Teway Food | China Eastern vs. Eastroc Beverage Group | China Eastern vs. Jiamei Food Packaging | China Eastern vs. Muyuan Foodstuff 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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