Correlation Between V V and Jiajia Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between V V Food and Jiajia Food Group, you can compare the effects of market volatilities on V V 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 V V with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Jiajia Food.
Diversification Opportunities for V V and Jiajia Food
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and Jiajia is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding V V Food 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 V V 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 V V Food 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 V V i.e., V V and Jiajia Food go up and down completely randomly.
Pair Corralation between V V and Jiajia Food
Assuming the 90 days trading horizon V V Food is expected to generate 1.43 times more return on investment than Jiajia Food. However, V V is 1.43 times more volatile than Jiajia Food Group. It trades about 0.19 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.13 per unit of risk. If you would invest 303.00 in V V Food on November 8, 2024 and sell it today you would earn a total of 27.00 from holding V V Food or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Jiajia Food Group
Performance |
| Timeline |
| V V Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Jiajia Food Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
V V and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Jiajia Food
The main advantage of trading using opposite V V and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V 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.The idea behind V V Food and Jiajia Food Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |