Correlation Between Guangdong Shenglu and Jahen Household
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jahen Household Products, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jahen Household.
Diversification Opportunities for Guangdong Shenglu and Jahen Household
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jahen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Jahen Household go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jahen Household
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.93 times more return on investment than Jahen Household. However, Guangdong Shenglu Telecommunication is 1.08 times less risky than Jahen Household. It trades about 0.0 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.0 per unit of risk. If you would invest 927.00 in Guangdong Shenglu Telecommunication on September 12, 2024 and sell it today you would lose (171.00) from holding Guangdong Shenglu Telecommunication or give up 18.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Jahen Household Products
Performance |
| Timeline |
| Guangdong Shenglu |
| Jahen Household Products |
Guangdong Shenglu and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jahen Household
The main advantage of trading using opposite Guangdong Shenglu and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Gansu Jiu Steel | Guangdong Shenglu vs. Shandong Mining Machinery | Guangdong Shenglu vs. Aba Chemicals Corp | Guangdong Shenglu vs. BlueFocus Communication Group |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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