Correlation Between Xinjiang Baodi and Jiajia Food
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Jiajia Food Group, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Jiajia Food.
Diversification Opportunities for Xinjiang Baodi and Jiajia Food
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Jiajia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Jiajia Food go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Jiajia Food
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.81 times more return on investment than Jiajia Food. However, Xinjiang Baodi Mining is 1.23 times less risky than Jiajia Food. It trades about 0.04 of its potential returns per unit of risk. Jiajia Food Group is currently generating about -0.02 per unit of risk. If you would invest 662.00 in Xinjiang Baodi Mining on October 10, 2024 and sell it today you would earn a total of 9.00 from holding Xinjiang Baodi Mining or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Jiajia Food Group
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Jiajia Food Group |
Xinjiang Baodi and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Jiajia Food
The main advantage of trading using opposite Xinjiang Baodi and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| Jiajia Food vs. Masterwork Machinery | Jiajia Food vs. Allied Machinery Co | Jiajia Food vs. Huasi Agricultural Development | Jiajia Food vs. Xingguang Agricultural Mach |
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 Stocks Directory module to find actively traded stocks across global markets.
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