Correlation Between Jiamei Food and Universal Scientific
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By analyzing existing cross correlation between Jiamei Food Packaging and Universal Scientific Industrial, you can compare the effects of market volatilities on Jiamei Food and Universal Scientific 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 Universal Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and Universal Scientific.
Diversification Opportunities for Jiamei Food and Universal Scientific
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiamei and Universal is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and Universal Scientific Industria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Scientific 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 Universal Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Scientific has no effect on the direction of Jiamei Food i.e., Jiamei Food and Universal Scientific go up and down completely randomly.
Pair Corralation between Jiamei Food and Universal Scientific
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to generate 1.4 times more return on investment than Universal Scientific. However, Jiamei Food is 1.4 times more volatile than Universal Scientific Industrial. It trades about 0.11 of its potential returns per unit of risk. Universal Scientific Industrial is currently generating about -0.05 per unit of risk. If you would invest 308.00 in Jiamei Food Packaging on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Jiamei Food Packaging or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. Universal Scientific Industria
Performance |
| Timeline |
| Jiamei Food Packaging |
| Universal Scientific |
Jiamei Food and Universal Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and Universal Scientific
The main advantage of trading using opposite Jiamei Food and Universal Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, Universal Scientific 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 Universal Scientific will offset losses from the drop in Universal Scientific'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 |
| Universal Scientific vs. Guangxi Wuzhou Communications | Universal Scientific vs. Winner Medical Co | Universal Scientific vs. Fibocom Wireless | Universal Scientific vs. Eyebright Medical Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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