Correlation Between Changchun and Jahen Household
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun UP Optotech and Jahen Household Products, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Jahen Household.
Diversification Opportunities for Changchun and Jahen Household
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Jahen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Jahen Household go up and down completely randomly.
Pair Corralation between Changchun and Jahen Household
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Changchun UP Optotech is 1.29 times less risky than Jahen Household. The stock trades about -0.21 of its potential returns per unit of risk. The Jahen Household Products is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,631 in Jahen Household Products on September 13, 2024 and sell it today you would earn a total of 386.00 from holding Jahen Household Products or generate 23.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Jahen Household Products
Performance |
| Timeline |
| Changchun UP Optotech |
| Jahen Household Products |
Changchun and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Jahen Household
The main advantage of trading using opposite Changchun and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec Co |
| Jahen Household vs. Jiangxi JDL Environmental | Jahen Household vs. Qiaoyin Environmental Tech | Jahen Household vs. Elite Color Environmental | Jahen Household vs. Guangdong Liantai Environmental |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |