Correlation Between Sichuan Teway and Jiajia Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Teway Food and Jiajia Food Group, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Jiajia Food.
Diversification Opportunities for Sichuan Teway and Jiajia Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Jiajia is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food 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 Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Jiajia Food go up and down completely randomly.
Pair Corralation between Sichuan Teway and Jiajia Food
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.28 times less risky than Jiajia Food. The stock trades about -0.02 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Jiajia Food Group on August 27, 2024 and sell it today you would lose (22.00) from holding Jiajia Food Group or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Jiajia Food Group
Performance |
| Timeline |
| Sichuan Teway Food |
| Jiajia Food Group |
Sichuan Teway and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Jiajia Food
The main advantage of trading using opposite Sichuan Teway and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. China Petroleum Chemical | Sichuan Teway vs. PetroChina Co Ltd | Sichuan Teway vs. China State Construction | Sichuan Teway vs. China Railway Group |
| Jiajia Food vs. China Petroleum Chemical | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China State Construction | Jiajia Food vs. China Railway Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |