Correlation Between Jiamei Food and JuneYao Dairy
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By analyzing existing cross correlation between Jiamei Food Packaging and JuneYao Dairy Co, you can compare the effects of market volatilities on Jiamei Food and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiamei Food and JuneYao Dairy.
Diversification Opportunities for Jiamei Food and JuneYao Dairy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiamei and JuneYao is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiamei Food Packaging and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Jiamei Food i.e., Jiamei Food and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Jiamei Food and JuneYao Dairy
Assuming the 90 days trading horizon Jiamei Food Packaging is expected to generate 0.64 times more return on investment than JuneYao Dairy. However, Jiamei Food Packaging is 1.56 times less risky than JuneYao Dairy. It trades about 0.04 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about 0.0 per unit of risk. If you would invest 285.00 in Jiamei Food Packaging on November 3, 2024 and sell it today you would earn a total of 39.00 from holding Jiamei Food Packaging or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiamei Food Packaging vs. JuneYao Dairy Co
Performance |
| Timeline |
| Jiamei Food Packaging |
| JuneYao Dairy |
Jiamei Food and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiamei Food and JuneYao Dairy
The main advantage of trading using opposite Jiamei Food and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiamei Food position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy'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 |
| JuneYao Dairy vs. Bus Online Co | JuneYao Dairy vs. Holitech Technology Co | JuneYao Dairy vs. Gome Telecom Equipment | JuneYao Dairy vs. Cultural Investment Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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