Correlation Between ShenZhen Yitoa and Jiajia Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between ShenZhen Yitoa Intelligent and Jiajia Food Group, you can compare the effects of market volatilities on ShenZhen Yitoa 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 ShenZhen Yitoa with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShenZhen Yitoa and Jiajia Food.
Diversification Opportunities for ShenZhen Yitoa and Jiajia Food
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ShenZhen and Jiajia is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ShenZhen Yitoa Intelligent 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 ShenZhen Yitoa 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 ShenZhen Yitoa Intelligent 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 ShenZhen Yitoa i.e., ShenZhen Yitoa and Jiajia Food go up and down completely randomly.
Pair Corralation between ShenZhen Yitoa and Jiajia Food
Assuming the 90 days trading horizon ShenZhen Yitoa is expected to generate 1.91 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, ShenZhen Yitoa Intelligent is 1.14 times less risky than Jiajia Food. It trades about 0.18 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Jiajia Food Group on August 29, 2024 and sell it today you would earn a total of 96.00 from holding Jiajia Food Group or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShenZhen Yitoa Intelligent vs. Jiajia Food Group
Performance |
| Timeline |
| ShenZhen Yitoa Intel |
| Jiajia Food Group |
ShenZhen Yitoa and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShenZhen Yitoa and Jiajia Food
The main advantage of trading using opposite ShenZhen Yitoa and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShenZhen Yitoa 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.| ShenZhen Yitoa vs. Nanjing Putian Telecommunications | ShenZhen Yitoa vs. Shenzhen Hifuture Electric | ShenZhen Yitoa vs. Shenyang Huitian Thermal | ShenZhen Yitoa vs. Jiangsu Xinning Modern |
| Jiajia Food vs. China Petroleum Chemical | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China State Construction | Jiajia Food vs. China Railway Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |