Correlation Between Liuzhou Chemical and Jiajia Food
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Jiajia Food Group, you can compare the effects of market volatilities on Liuzhou Chemical 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 Liuzhou Chemical with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Jiajia Food.
Diversification Opportunities for Liuzhou Chemical and Jiajia Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Liuzhou and Jiajia is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical 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 Liuzhou Chemical 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 Liuzhou Chemical 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 Liuzhou Chemical i.e., Liuzhou Chemical and Jiajia Food go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Jiajia Food
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Liuzhou Chemical Industry is 1.11 times less risky than Jiajia Food. The stock trades about -0.01 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 14, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Jiajia Food Group
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Jiajia Food Group |
Liuzhou Chemical and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Jiajia Food
The main advantage of trading using opposite Liuzhou Chemical and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical 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.| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Shandong Gold Mining |
| Jiajia Food vs. Maoming Petro Chemical Shihua | Jiajia Food vs. Shandong Longquan Pipeline | Jiajia Food vs. Liuzhou Chemical Industry | Jiajia Food vs. Xiangtan Electrochemical Scientific |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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