Correlation Between CITIC Metal and Jiajia Food
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By analyzing existing cross correlation between CITIC Metal Co and Jiajia Food Group, you can compare the effects of market volatilities on CITIC Metal 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 CITIC Metal with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Jiajia Food.
Diversification Opportunities for CITIC Metal and Jiajia Food
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Jiajia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co 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 CITIC Metal 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 CITIC Metal Co 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 CITIC Metal i.e., CITIC Metal and Jiajia Food go up and down completely randomly.
Pair Corralation between CITIC Metal and Jiajia Food
Assuming the 90 days trading horizon CITIC Metal is expected to generate 3.89 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, CITIC Metal Co is 2.71 times less risky than Jiajia Food. It trades about 0.13 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Jiajia Food Group on November 7, 2024 and sell it today you would earn a total of 29.00 from holding Jiajia Food Group or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Jiajia Food Group
Performance |
| Timeline |
| CITIC Metal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiajia Food Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
CITIC Metal and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Jiajia Food
The main advantage of trading using opposite CITIC Metal and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal 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 CITIC Metal Co 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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