Correlation Between China Petroleum and Jiajia Food
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By analyzing existing cross correlation between China Petroleum Chemical and Jiajia Food Group, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Jiajia Food.
Diversification Opportunities for China Petroleum and Jiajia Food
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Jiajia is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical 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 China Petroleum 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 China Petroleum Chemical 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 China Petroleum i.e., China Petroleum and Jiajia Food go up and down completely randomly.
Pair Corralation between China Petroleum and Jiajia Food
Assuming the 90 days trading horizon China Petroleum is expected to generate 12.15 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, China Petroleum Chemical is 2.18 times less risky than Jiajia Food. It trades about 0.01 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 334.00 in Jiajia Food Group on August 25, 2024 and sell it today you would earn a total of 84.00 from holding Jiajia Food Group or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Jiajia Food Group
Performance |
| Timeline |
| China Petroleum Chemical |
| Jiajia Food Group |
China Petroleum and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Jiajia Food
The main advantage of trading using opposite China Petroleum and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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