Correlation Between Beijing Watertek and Jiajia Food
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By analyzing existing cross correlation between Beijing Watertek Information and Jiajia Food Group, you can compare the effects of market volatilities on Beijing Watertek 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 Beijing Watertek with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Watertek and Jiajia Food.
Diversification Opportunities for Beijing Watertek and Jiajia Food
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Jiajia is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Watertek Information 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 Beijing Watertek 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 Beijing Watertek Information 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 Beijing Watertek i.e., Beijing Watertek and Jiajia Food go up and down completely randomly.
Pair Corralation between Beijing Watertek and Jiajia Food
Assuming the 90 days trading horizon Beijing Watertek is expected to generate 1.61 times less return on investment than Jiajia Food. In addition to that, Beijing Watertek is 1.42 times more volatile than Jiajia Food Group. It trades about 0.1 of its total potential returns per unit of risk. Jiajia Food Group is currently generating about 0.24 per unit of volatility. If you would invest 181.00 in Jiajia Food Group on October 18, 2024 and sell it today you would earn a total of 288.00 from holding Jiajia Food Group or generate 159.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Watertek Information vs. Jiajia Food Group
Performance |
| Timeline |
| Beijing Watertek Inf |
| Jiajia Food Group |
Beijing Watertek and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Watertek and Jiajia Food
The main advantage of trading using opposite Beijing Watertek and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Watertek 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.| Beijing Watertek vs. Jiajia Food Group | Beijing Watertek vs. Heilongjiang Transport Development | Beijing Watertek vs. Anshan Senyuan Road | Beijing Watertek vs. Highbroad Advanced Material |
| Jiajia Food vs. Haima Automobile Group | Jiajia Food vs. Runjian Communication Co | Jiajia Food vs. TianJin 712 Communication | Jiajia Food vs. Shandong Polymer Biochemicals |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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