Correlation Between Advanced Technology and Jahen Household
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By analyzing existing cross correlation between Advanced Technology Materials and Jahen Household Products, you can compare the effects of market volatilities on Advanced Technology 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 Advanced Technology with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Jahen Household.
Diversification Opportunities for Advanced Technology and Jahen Household
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advanced and Jahen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials 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 Advanced Technology 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 Advanced Technology Materials 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 Advanced Technology i.e., Advanced Technology and Jahen Household go up and down completely randomly.
Pair Corralation between Advanced Technology and Jahen Household
Assuming the 90 days trading horizon Advanced Technology Materials is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Advanced Technology Materials is 1.97 times less risky than Jahen Household. The stock trades about -0.05 of its potential returns per unit of risk. The Jahen Household Products is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Jahen Household Products on October 30, 2024 and sell it today you would lose (122.00) from holding Jahen Household Products or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. Jahen Household Products
Performance |
| Timeline |
| Advanced Technology |
| Jahen Household Products |
Advanced Technology and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and Jahen Household
The main advantage of trading using opposite Advanced Technology and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology 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.| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
| Jahen Household vs. Western Mining Co | Jahen Household vs. Xinjiang Baodi Mining | Jahen Household vs. Shanghai Rongtai Health | Jahen Household vs. Dezhan HealthCare 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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