Correlation Between NBTM New and Jiajia Food
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By analyzing existing cross correlation between NBTM New Materials and Jiajia Food Group, you can compare the effects of market volatilities on NBTM New 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 NBTM New with a short position of Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Jiajia Food.
Diversification Opportunities for NBTM New and Jiajia Food
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NBTM and Jiajia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials 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 NBTM New 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 NBTM New Materials 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 NBTM New i.e., NBTM New and Jiajia Food go up and down completely randomly.
Pair Corralation between NBTM New and Jiajia Food
Assuming the 90 days trading horizon NBTM New is expected to generate 4.71 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, NBTM New Materials is 1.06 times less risky than Jiajia Food. It trades about 0.09 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Jiajia Food Group on September 24, 2024 and sell it today you would earn a total of 306.00 from holding Jiajia Food Group or generate 141.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NBTM New Materials vs. Jiajia Food Group
Performance |
Timeline |
NBTM New Materials |
Jiajia Food Group |
NBTM New and Jiajia Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBTM New and Jiajia Food
The main advantage of trading using opposite NBTM New and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New 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.NBTM New vs. JCHX Mining Management | NBTM New vs. Ye Chiu Metal | NBTM New vs. Shanghai CEO Environmental | NBTM New vs. Ningbo Thermal Power |
Jiajia Food vs. Marssenger Kitchenware Co | Jiajia Food vs. Meinian Onehealth Healthcare | Jiajia Food vs. NBTM New Materials | Jiajia Food vs. Shandong Sinoglory Health |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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