Correlation Between Jiangsu Financial and Jiajia Food
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Jiajia Food Group, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Jiajia Food.
Diversification Opportunities for Jiangsu Financial and Jiajia Food
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Jiajia is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Jiajia Food go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Jiajia Food
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 2.37 times less risky than Jiajia Food. The stock trades about -0.02 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Jiajia Food Group on October 25, 2024 and sell it today you would earn a total of 187.00 from holding Jiajia Food Group or generate 64.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Jiajia Food Group
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Jiajia Food Group |
Jiangsu Financial and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Jiajia Food
The main advantage of trading using opposite Jiangsu Financial and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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