Correlation Between Allied Machinery and Jiajia Food
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By analyzing existing cross correlation between Allied Machinery Co and Jiajia Food Group, you can compare the effects of market volatilities on Allied Machinery 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 Allied Machinery with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Jiajia Food.
Diversification Opportunities for Allied Machinery and Jiajia Food
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allied and Jiajia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery 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 Allied Machinery 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 Allied Machinery 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 Allied Machinery i.e., Allied Machinery and Jiajia Food go up and down completely randomly.
Pair Corralation between Allied Machinery and Jiajia Food
Assuming the 90 days trading horizon Allied Machinery Co is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Allied Machinery Co is 1.06 times less risky than Jiajia Food. The stock trades about -0.01 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 437.00 in Jiajia Food Group on October 11, 2024 and sell it today you would earn a total of 14.00 from holding Jiajia Food Group or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Jiajia Food Group
Performance |
| Timeline |
| Allied Machinery |
| Jiajia Food Group |
Allied Machinery and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Jiajia Food
The main advantage of trading using opposite Allied Machinery and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery 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.| Allied Machinery vs. Jinxiandai Information Industry | Allied Machinery vs. Longmaster Information Tech | Allied Machinery vs. Hangzhou Gisway Information | Allied Machinery vs. Shaanxi Construction Machinery |
| Jiajia Food vs. Masterwork Machinery | Jiajia Food vs. Allied Machinery Co | Jiajia Food vs. Huasi Agricultural Development | Jiajia Food vs. Xingguang Agricultural Mach |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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