Correlation Between Jiamei Food and China Mobile
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By analyzing existing cross correlation between Jiamei Food Packaging and China Mobile Limited, you can compare the effects of market volatilities on Jiamei Food and China Mobile 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 Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and China Mobile.
Diversification Opportunities for Jiamei Food and China Mobile
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiamei and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Jiamei Food i.e., Jiamei Food and China Mobile go up and down completely randomly.
Pair Corralation between Jiamei Food and China Mobile
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to generate 1.31 times more return on investment than China Mobile. However, Jiamei Food is 1.31 times more volatile than China Mobile Limited. It trades about 0.27 of its potential returns per unit of risk. China Mobile Limited is currently generating about 0.19 per unit of risk. If you would invest 317.00 in Jiamei Food Packaging on September 5, 2024 and sell it today you would earn a total of 30.00 from holding Jiamei Food Packaging or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiamei Food Packaging vs. China Mobile Limited
Performance |
| Timeline |
| Jiamei Food Packaging |
| China Mobile Limited |
Jiamei Food and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and China Mobile
The main advantage of trading using opposite Jiamei Food and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, China Mobile 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 Mobile will offset losses from the drop in China Mobile's long position.| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Rongsheng Petrochemical Co |
| China Mobile vs. Ye Chiu Metal | China Mobile vs. Jiangsu Financial Leasing | China Mobile vs. Xiwang Foodstuffs Co | China Mobile vs. Jiamei Food Packaging |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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