Correlation Between Jilin Jlu and Jiajia Food
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiajia Food Group, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiajia Food.
Diversification Opportunities for Jilin Jlu and Jiajia Food
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Jiajia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication 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 Jilin Jlu 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 Jilin Jlu Communication 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 Jilin Jlu i.e., Jilin Jlu and Jiajia Food go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiajia Food
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.41 times less return on investment than Jiajia Food. In addition to that, Jilin Jlu is 1.11 times more volatile than Jiajia Food Group. It trades about 0.01 of its total potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 per unit of volatility. If you would invest 439.00 in Jiajia Food Group on October 16, 2024 and sell it today you would lose (3.00) from holding Jiajia Food Group or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Jiajia Food Group
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiajia Food Group |
Jilin Jlu and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiajia Food
The main advantage of trading using opposite Jilin Jlu and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.| Jilin Jlu vs. Hengli Industrial Development | Jilin Jlu vs. Qingdao Choho Industrial | Jilin Jlu vs. Montage Technology Co | Jilin Jlu vs. Western Metal Materials |
| Jiajia Food vs. Jilin Jlu Communication | Jiajia Food vs. Bank of Communications | Jiajia Food vs. Aba Chemicals Corp | Jiajia Food vs. Ningxia Younglight Chemicals |
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.
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