Correlation Between Jiayuan International and Tasty Fries
Can any of the company-specific risk be diversified away by investing in both Jiayuan International and Tasty Fries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jiayuan International and Tasty Fries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayuan International and Tasty Fries, you can compare the effects of market volatilities on Jiayuan International and Tasty Fries 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 Jiayuan International with a short position of Tasty Fries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayuan International and Tasty Fries.
Diversification Opportunities for Jiayuan International and Tasty Fries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jiayuan and Tasty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiayuan International and Tasty Fries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tasty Fries and Jiayuan International 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 Jiayuan International are associated (or correlated) with Tasty Fries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tasty Fries has no effect on the direction of Jiayuan International i.e., Jiayuan International and Tasty Fries go up and down completely randomly.
Pair Corralation between Jiayuan International and Tasty Fries
If you would invest 0.00 in Tasty Fries on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Tasty Fries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jiayuan International vs. Tasty Fries
Performance |
| Timeline |
| Jiayuan International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tasty Fries |
Jiayuan International and Tasty Fries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayuan International and Tasty Fries
The main advantage of trading using opposite Jiayuan International and Tasty Fries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayuan International position performs unexpectedly, Tasty Fries 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 Tasty Fries will offset losses from the drop in Tasty Fries' long position.| Jiayuan International vs. Olympic Steel | Jiayuan International vs. Hibbett Sports | Jiayuan International vs. Asbury Automotive Group | Jiayuan International vs. Carters |
| Tasty Fries vs. Trinity Industries | Tasty Fries vs. Freightcar America | Tasty Fries vs. Westinghouse Air Brake | Tasty Fries vs. Norfolk Southern |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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