Correlation Between Ningbo Thermal and Jiajia Food
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By analyzing existing cross correlation between Ningbo Thermal Power and Jiajia Food Group, you can compare the effects of market volatilities on Ningbo Thermal 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 Ningbo Thermal with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Jiajia Food.
Diversification Opportunities for Ningbo Thermal and Jiajia Food
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Jiajia is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power 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 Ningbo Thermal 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 Ningbo Thermal Power 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 Ningbo Thermal i.e., Ningbo Thermal and Jiajia Food go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Jiajia Food
Assuming the 90 days trading horizon Ningbo Thermal is expected to generate 1.51 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, Ningbo Thermal Power is 1.34 times less risky than Jiajia Food. It trades about 0.01 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 473.00 in Jiajia Food Group on September 28, 2024 and sell it today you would earn a total of 6.00 from holding Jiajia Food Group or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Jiajia Food Group
Performance |
| Timeline |
| Ningbo Thermal Power |
| Jiajia Food Group |
Ningbo Thermal and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Jiajia Food
The main advantage of trading using opposite Ningbo Thermal and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal 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.| Ningbo Thermal vs. BeiGene | Ningbo Thermal vs. Kweichow Moutai Co | Ningbo Thermal vs. Beijing Roborock Technology | Ningbo Thermal vs. G bits Network Technology |
| Jiajia Food vs. AVIC Fund Management | Jiajia Food vs. Hefei Metalforming Mach | Jiajia Food vs. Ningbo Thermal Power | Jiajia Food vs. China Nonferrous Metal |
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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