Correlation Between China State and Jiajia Food
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By analyzing existing cross correlation between China State Construction and Jiajia Food Group, you can compare the effects of market volatilities on China State 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 China State with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Jiajia Food.
Diversification Opportunities for China State and Jiajia Food
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jiajia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Jiajia Food go up and down completely randomly.
Pair Corralation between China State and Jiajia Food
Assuming the 90 days trading horizon China State Construction is expected to generate 0.54 times more return on investment than Jiajia Food. However, China State Construction is 1.84 times less risky than Jiajia Food. It trades about 0.05 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.01 per unit of risk. If you would invest 488.00 in China State Construction on August 29, 2024 and sell it today you would earn a total of 104.00 from holding China State Construction or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Jiajia Food Group
Performance |
| Timeline |
| China State Construction |
| Jiajia Food Group |
China State and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Jiajia Food
The main advantage of trading using opposite China State and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China Mobile Limited | Jiajia Food vs. Ping An Insurance | Jiajia Food vs. China Petroleum Chemical |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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