Correlation Between Shandong Ruifeng and Jiajia Food
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Jiajia Food Group, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Jiajia Food.
Diversification Opportunities for Shandong Ruifeng and Jiajia Food
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Jiajia is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical 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 Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and Jiajia Food go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Jiajia Food
Assuming the 90 days trading horizon Shandong Ruifeng is expected to generate 6.55 times less return on investment than Jiajia Food. In addition to that, Shandong Ruifeng is 1.21 times more volatile than Jiajia Food Group. It trades about 0.02 of its total potential returns per unit of risk. Jiajia Food Group is currently generating about 0.13 per unit of volatility. If you would invest 259.00 in Jiajia Food Group on September 3, 2024 and sell it today you would earn a total of 206.00 from holding Jiajia Food Group or generate 79.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Jiajia Food Group
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Jiajia Food Group |
Shandong Ruifeng and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Jiajia Food
The main advantage of trading using opposite Shandong Ruifeng and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Beijing Bashi Media | Shandong Ruifeng vs. Air China Ltd | Shandong Ruifeng vs. Inly Media Co | Shandong Ruifeng vs. Bus Online Co |
| Jiajia Food vs. Beijing Wantai Biological | Jiajia Food vs. Aluminum Corp of | Jiajia Food vs. COL Digital Publishing | Jiajia Food vs. Shaanxi Meineng Clean |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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