Correlation Between Great Sun and Jiajia Food
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By analyzing existing cross correlation between Great Sun Foods Co and Jiajia Food Group, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Jiajia Food.
Diversification Opportunities for Great Sun and Jiajia Food
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Jiajia is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co 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 Great Sun 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 Great Sun Foods Co 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 Great Sun i.e., Great Sun and Jiajia Food go up and down completely randomly.
Pair Corralation between Great Sun and Jiajia Food
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Great Sun Foods Co is 1.03 times less risky than Jiajia Food. The stock trades about -0.04 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 354.00 in Jiajia Food Group on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Jiajia Food Group or generate 31.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Jiajia Food Group
Performance |
| Timeline |
| Great Sun Foods |
| Jiajia Food Group |
Great Sun and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Jiajia Food
The main advantage of trading using opposite Great Sun and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
| Jiajia Food vs. Anyang Iron Steel | Jiajia Food vs. Tianjin Capital Environmental | Jiajia Food vs. Lingyuan Iron Steel | Jiajia Food vs. Penyao Environmental Protection |
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 Positions Ratings module to 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.
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