Correlation Between China Merchants and Jiajia Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Bank and Jiajia Food Group, you can compare the effects of market volatilities on China Merchants 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 Merchants with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Jiajia Food.
Diversification Opportunities for China Merchants and Jiajia Food
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jiajia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank 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 Merchants 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 Merchants Bank 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 Merchants i.e., China Merchants and Jiajia Food go up and down completely randomly.
Pair Corralation between China Merchants and Jiajia Food
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.38 times more return on investment than Jiajia Food. However, China Merchants Bank is 2.64 times less risky than Jiajia Food. It trades about 0.07 of its potential returns per unit of risk. Jiajia Food Group is currently generating about -0.06 per unit of risk. If you would invest 3,922 in China Merchants Bank on October 25, 2024 and sell it today you would earn a total of 61.00 from holding China Merchants Bank or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Merchants Bank vs. Jiajia Food Group
Performance |
| Timeline |
| China Merchants Bank |
| Jiajia Food Group |
China Merchants and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Jiajia Food
The main advantage of trading using opposite China Merchants and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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 Merchants vs. Jilin OLED Material | China Merchants vs. Konfoong Materials International | China Merchants vs. Sichuan Hebang Biotechnology | China Merchants vs. Ningbo Tip Rubber |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |