Correlation Between Aluminum Corp and Jiajia Food
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By analyzing existing cross correlation between Aluminum Corp of and Jiajia Food Group, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Jiajia Food.
Diversification Opportunities for Aluminum Corp and Jiajia Food
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aluminum and Jiajia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Jiajia Food go up and down completely randomly.
Pair Corralation between Aluminum Corp and Jiajia Food
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 2.53 times less risky than Jiajia Food. The stock trades about -0.1 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Jiajia Food Group on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Jiajia Food Group or generate 24.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Jiajia Food Group
Performance |
| Timeline |
| Aluminum Corp |
| Jiajia Food Group |
Aluminum Corp and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Jiajia Food
The main advantage of trading using opposite Aluminum Corp and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co |
| Jiajia Food vs. Poly Real Estate | Jiajia Food vs. China Vanke Co | Jiajia Food vs. China Merchants Shekou | Jiajia Food vs. Huafa Industrial Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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