Correlation Between Chongqing Sulian and Jiajia Food
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Jiajia Food Group, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Jiajia Food.
Diversification Opportunities for Chongqing Sulian and Jiajia Food
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Jiajia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic 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 Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and Jiajia Food go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Jiajia Food
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Sulian Plastic is 1.28 times less risky than Jiajia Food. The stock trades about -0.28 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Jiajia Food Group on October 17, 2024 and sell it today you would lose (73.00) from holding Jiajia Food Group or give up 13.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Jiajia Food Group
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Jiajia Food Group |
Chongqing Sulian and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Jiajia Food
The main advantage of trading using opposite Chongqing Sulian and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.| Chongqing Sulian vs. Thinkingdom Media Group | Chongqing Sulian vs. Anhui Xinhua Media | Chongqing Sulian vs. Threes Company Media | Chongqing Sulian vs. Beijing Enlight Media |
| Jiajia Food vs. Orinko Advanced Plastics | Jiajia Food vs. Chongqing Sulian Plastic | Jiajia Food vs. Ningxia Building Materials | Jiajia Food vs. Henan Shuanghui Investment |
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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