Correlation Between Bank of China and Jiajia Food
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By analyzing existing cross correlation between Bank of China and Jiajia Food Group, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jiajia Food.
Diversification Opportunities for Bank of China and Jiajia Food
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Jiajia is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Jiajia Food go up and down completely randomly.
Pair Corralation between Bank of China and Jiajia Food
Assuming the 90 days trading horizon Bank of China is expected to generate 0.5 times more return on investment than Jiajia Food. However, Bank of China is 2.01 times less risky than Jiajia Food. It trades about 0.09 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 295.00 in Bank of China on September 2, 2024 and sell it today you would earn a total of 206.00 from holding Bank of China or generate 69.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Jiajia Food Group
Performance |
| Timeline |
| Bank of China |
| Jiajia Food Group |
Bank of China and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jiajia Food
The main advantage of trading using opposite Bank of China and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
| Jiajia Food vs. Pengxin International Mining | Jiajia Food vs. Shandong Polymer Biochemicals | Jiajia Food vs. Industrial Securities Co | Jiajia Food vs. Shenzhen Shenbao Industrial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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