Correlation Between ChengDu Hi and Jahen Household
Specify exactly 2 symbols:
By analyzing existing cross correlation between ChengDu Hi Tech Development and Jahen Household Products, you can compare the effects of market volatilities on ChengDu Hi and Jahen Household 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 ChengDu Hi with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Jahen Household.
Diversification Opportunities for ChengDu Hi and Jahen Household
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ChengDu and Jahen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products and ChengDu Hi 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 ChengDu Hi Tech Development are associated (or correlated) with Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Jahen Household go up and down completely randomly.
Pair Corralation between ChengDu Hi and Jahen Household
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, ChengDu Hi Tech Development is 1.59 times less risky than Jahen Household. The stock trades about -0.22 of its potential returns per unit of risk. The Jahen Household Products is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Jahen Household Products on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Jahen Household Products or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Jahen Household Products
Performance |
| Timeline |
| ChengDu Hi Tech |
| Jahen Household Products |
ChengDu Hi and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Jahen Household
The main advantage of trading using opposite ChengDu Hi and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Guangdong Shenglu Telecommunication | Jahen Household vs. Tongyu Communication | Jahen Household vs. FSPG Hi Tech Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |