Correlation Between Shenzhen Noposion and Jahen Household
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Jahen Household Products, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Jahen Household.
Diversification Opportunities for Shenzhen Noposion and Jahen Household
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jahen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Jahen Household go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Jahen Household
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.81 times more return on investment than Jahen Household. However, Shenzhen Noposion Agrochemicals is 1.23 times less risky than Jahen Household. It trades about -0.15 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.38 per unit of risk. If you would invest 1,134 in Shenzhen Noposion Agrochemicals on October 12, 2024 and sell it today you would lose (118.00) from holding Shenzhen Noposion Agrochemicals or give up 10.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Jahen Household Products
Performance |
| Timeline |
| Shenzhen Noposion |
| Jahen Household Products |
Shenzhen Noposion and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Jahen Household
The main advantage of trading using opposite Shenzhen Noposion and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. SSAW Hotels Resorts | Shenzhen Noposion vs. Zhengzhou Coal Mining | Shenzhen Noposion vs. BTG Hotels Group | Shenzhen Noposion vs. Shenzhen Silver Basis |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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