Correlation Between Shandong Hongchuang and Jahen Household
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By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Jahen Household Products, you can compare the effects of market volatilities on Shandong Hongchuang 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 Shandong Hongchuang with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Jahen Household.
Diversification Opportunities for Shandong Hongchuang and Jahen Household
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Jahen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum 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 Shandong Hongchuang 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 Shandong Hongchuang Aluminum 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 Shandong Hongchuang i.e., Shandong Hongchuang and Jahen Household go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Jahen Household
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.28 times more return on investment than Jahen Household. However, Shandong Hongchuang is 1.28 times more volatile than Jahen Household Products. It trades about 0.13 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.14 per unit of risk. If you would invest 691.00 in Shandong Hongchuang Aluminum on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Shandong Hongchuang Aluminum or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Jahen Household Products
Performance |
| Timeline |
| Shandong Hongchuang |
| Jahen Household Products |
Shandong Hongchuang and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Jahen Household
The main advantage of trading using opposite Shandong Hongchuang and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang 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.| Shandong Hongchuang vs. Zijin Mining Group | Shandong Hongchuang vs. Wanhua Chemical Group | Shandong Hongchuang vs. Baoshan Iron Steel | Shandong Hongchuang vs. Rongsheng Petrochemical Co |
| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Wuhan Yangtze Communication | Jahen Household vs. Sunny Loan Top | Jahen Household vs. Xinjiang Baodi Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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