Correlation Between CIMC Vehicles and Jiajia Food
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By analyzing existing cross correlation between CIMC Vehicles Co and Jiajia Food Group, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Jiajia Food.
Diversification Opportunities for CIMC Vehicles and Jiajia Food
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Jiajia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles i.e., CIMC Vehicles and Jiajia Food go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Jiajia Food
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 2.05 times less risky than Jiajia Food. The stock trades about -0.05 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Jiajia Food Group on August 27, 2024 and sell it today you would earn a total of 112.00 from holding Jiajia Food Group or generate 36.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Jiajia Food Group
Performance |
| Timeline |
| CIMC Vehicles |
| Jiajia Food Group |
CIMC Vehicles and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Jiajia Food
The main advantage of trading using opposite CIMC Vehicles and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. Focus Media Information | CIMC Vehicles vs. Chengdu B ray Media | CIMC Vehicles vs. Hengdian Entertainment Co | CIMC Vehicles vs. Oriental Times Media |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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