Correlation Between Sichuan Teway and Jiamei Food
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Teway Food and Jiamei Food Packaging, you can compare the effects of market volatilities on Sichuan Teway and Jiamei 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 Jiamei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Jiamei Food.
Diversification Opportunities for Sichuan Teway and Jiamei Food
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Jiamei is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Jiamei Food Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiamei Food Packaging 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 Jiamei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiamei Food Packaging has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Jiamei Food go up and down completely randomly.
Pair Corralation between Sichuan Teway and Jiamei Food
Assuming the 90 days trading horizon Sichuan Teway is expected to generate 2.99 times less return on investment than Jiamei Food. In addition to that, Sichuan Teway is 1.59 times more volatile than Jiamei Food Packaging. It trades about 0.05 of its total potential returns per unit of risk. Jiamei Food Packaging is currently generating about 0.24 per unit of volatility. If you would invest 308.00 in Jiamei Food Packaging on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Jiamei Food Packaging or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Jiamei Food Packaging
Performance |
| Timeline |
| Sichuan Teway Food |
| Jiamei Food Packaging |
Sichuan Teway and Jiamei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Jiamei Food
The main advantage of trading using opposite Sichuan Teway and Jiamei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Jiamei 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 Jiamei Food will offset losses from the drop in Jiamei Food's long position.| Sichuan Teway vs. Anhui Jinhe Industrial | Sichuan Teway vs. Xizi Clean Energy | Sichuan Teway vs. Guangzhou KingTeller Technology | Sichuan Teway vs. Holitech Technology Co |
| Jiamei Food vs. Shandong Gold Mining | Jiamei Food vs. Inner Mongolia BaoTou | Jiamei Food vs. Jiangxi Ganfeng Lithium | Jiamei Food vs. Yunnan Aluminium 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |