Correlation Between Juewei Food and GRIPM Advanced
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By analyzing existing cross correlation between Juewei Food Co and GRIPM Advanced Materials, you can compare the effects of market volatilities on Juewei Food and GRIPM Advanced 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 Juewei Food with a short position of GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and GRIPM Advanced.
Diversification Opportunities for Juewei Food and GRIPM Advanced
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juewei and GRIPM is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials and Juewei Food 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 Juewei Food Co are associated (or correlated) with GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Juewei Food i.e., Juewei Food and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Juewei Food and GRIPM Advanced
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the GRIPM Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.2 times less risky than GRIPM Advanced. The stock trades about -0.08 of its potential returns per unit of risk. The GRIPM Advanced Materials is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,460 in GRIPM Advanced Materials on August 27, 2024 and sell it today you would lose (230.00) from holding GRIPM Advanced Materials or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Juewei Food |
| GRIPM Advanced Materials |
Juewei Food and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and GRIPM Advanced
The main advantage of trading using opposite Juewei Food and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Juewei Food vs. China Petroleum Chemical | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. China State Construction | Juewei Food vs. China Railway Group |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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