Correlation Between Bosera CMSK and Jiajia Food
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By analyzing existing cross correlation between Bosera CMSK Industrial and Jiajia Food Group, you can compare the effects of market volatilities on Bosera CMSK and Jiajia Food 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 Bosera CMSK with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Jiajia Food.
Diversification Opportunities for Bosera CMSK and Jiajia Food
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bosera and Jiajia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group and Bosera CMSK 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 Bosera CMSK Industrial are associated (or correlated) with Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Jiajia Food go up and down completely randomly.
Pair Corralation between Bosera CMSK and Jiajia Food
Assuming the 90 days trading horizon Bosera CMSK is expected to generate 6.78 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, Bosera CMSK Industrial is 3.55 times less risky than Jiajia Food. It trades about 0.13 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Jiajia Food Group on October 25, 2024 and sell it today you would earn a total of 297.00 from holding Jiajia Food Group or generate 164.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Jiajia Food Group
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Jiajia Food Group |
Bosera CMSK and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Jiajia Food
The main advantage of trading using opposite Bosera CMSK and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Bosera CMSK vs. Gansu Jiu Steel | Bosera CMSK vs. Ming Yang Smart | Bosera CMSK vs. Aba Chemicals Corp | Bosera CMSK vs. Loctek Ergonomic Technology |
| Jiajia Food vs. Agricultural Bank of | Jiajia Food vs. Postal Savings Bank | Jiajia Food vs. Bank of Communications | Jiajia Food vs. China Merchants Bank |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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