Correlation Between Zhongjing Food and Jiajia Food
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By analyzing existing cross correlation between Zhongjing Food Co and Jiajia Food Group, you can compare the effects of market volatilities on Zhongjing Food 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 Zhongjing Food with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Jiajia Food.
Diversification Opportunities for Zhongjing Food and Jiajia Food
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongjing and Jiajia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co 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 Zhongjing Food 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 Zhongjing Food Co 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 Zhongjing Food i.e., Zhongjing Food and Jiajia Food go up and down completely randomly.
Pair Corralation between Zhongjing Food and Jiajia Food
Assuming the 90 days trading horizon Zhongjing Food is expected to generate 14.03 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, Zhongjing Food Co is 1.12 times less risky than Jiajia Food. It trades about 0.02 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Jiajia Food Group on October 25, 2024 and sell it today you would earn a total of 187.00 from holding Jiajia Food Group or generate 64.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Jiajia Food Group
Performance |
| Timeline |
| Zhongjing Food |
| Jiajia Food Group |
Zhongjing Food and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Jiajia Food
The main advantage of trading using opposite Zhongjing Food and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food 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.| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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