Correlation Between China Sports and Jiajia Food
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By analyzing existing cross correlation between China Sports Industry and Jiajia Food Group, you can compare the effects of market volatilities on China Sports 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 Sports with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Jiajia Food.
Diversification Opportunities for China Sports and Jiajia Food
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jiajia is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry 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 Sports 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 Sports Industry 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 Sports i.e., China Sports and Jiajia Food go up and down completely randomly.
Pair Corralation between China Sports and Jiajia Food
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.22 times less risky than Jiajia Food. The stock trades about 0.0 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Jiajia Food Group on October 15, 2024 and sell it today you would earn a total of 11.00 from holding Jiajia Food Group or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Jiajia Food Group
Performance |
| Timeline |
| China Sports Industry |
| Jiajia Food Group |
China Sports and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Jiajia Food
The main advantage of trading using opposite China Sports and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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 Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
| Jiajia Food vs. Jilin Jlu Communication | Jiajia Food vs. Bank of Communications | Jiajia Food vs. Aba Chemicals Corp | Jiajia Food vs. Ningxia Younglight Chemicals |
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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