Correlation Between Jiajia Food and Gem Year
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By analyzing existing cross correlation between Jiajia Food Group and Gem Year Industrial Co, you can compare the effects of market volatilities on Jiajia Food and Gem Year 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 Jiajia Food with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiajia Food and Gem Year.
Diversification Opportunities for Jiajia Food and Gem Year
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiajia and Gem is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiajia Food Group and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Jiajia 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 Jiajia Food Group are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Jiajia Food i.e., Jiajia Food and Gem Year go up and down completely randomly.
Pair Corralation between Jiajia Food and Gem Year
Assuming the 90 days trading horizon Jiajia Food Group is expected to generate 1.15 times more return on investment than Gem Year. However, Jiajia Food is 1.15 times more volatile than Gem Year Industrial Co. It trades about 0.44 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.29 per unit of risk. If you would invest 195.00 in Jiajia Food Group on September 13, 2024 and sell it today you would earn a total of 277.00 from holding Jiajia Food Group or generate 142.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiajia Food Group vs. Gem Year Industrial Co
Performance |
Timeline |
Jiajia Food Group |
Gem Year Industrial |
Jiajia Food and Gem Year Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiajia Food and Gem Year
The main advantage of trading using opposite Jiajia Food and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiajia Food position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.Jiajia Food vs. Nanjing Putian Telecommunications | Jiajia Food vs. Tianjin Realty Development | Jiajia Food vs. Kangyue Technology Co | Jiajia Food vs. Shenzhen Hifuture Electric |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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