Correlation Between Xinjiang Tianrun and Jiamei Food
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Jiamei Food Packaging, you can compare the effects of market volatilities on Xinjiang Tianrun and Jiamei 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 Xinjiang Tianrun with a short position of Jiamei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Jiamei Food.
Diversification Opportunities for Xinjiang Tianrun and Jiamei Food
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Jiamei is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Jiamei Food Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiamei Food Packaging and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy are associated (or correlated) with Jiamei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiamei Food Packaging has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Jiamei Food go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Jiamei Food
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to generate 1.25 times more return on investment than Jiamei Food. However, Xinjiang Tianrun is 1.25 times more volatile than Jiamei Food Packaging. It trades about 0.16 of its potential returns per unit of risk. Jiamei Food Packaging is currently generating about 0.16 per unit of risk. If you would invest 742.00 in Xinjiang Tianrun Dairy on August 24, 2024 and sell it today you would earn a total of 200.00 from holding Xinjiang Tianrun Dairy or generate 26.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Jiamei Food Packaging
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Jiamei Food Packaging |
Xinjiang Tianrun and Jiamei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Jiamei Food
The main advantage of trading using opposite Xinjiang Tianrun and Jiamei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Jiamei 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 Jiamei Food will offset losses from the drop in Jiamei Food's long position.| Xinjiang Tianrun vs. Beijing HuaYuanYiTong Thermal | Xinjiang Tianrun vs. Zhejiang Yayi Metal | Xinjiang Tianrun vs. Shanghai Yanpu Metal | Xinjiang Tianrun vs. HaiXin Foods Co |
| Jiamei Food vs. Qijing Machinery | Jiamei Food vs. China Railway Construction | Jiamei Food vs. Zotye Automobile Co | Jiamei Food vs. Sinomach Automobile Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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