Correlation Between Suofeiya Home and Jadard Technology
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By analyzing existing cross correlation between Suofeiya Home Collection and Jadard Technology A, you can compare the effects of market volatilities on Suofeiya Home and Jadard Technology 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 Suofeiya Home with a short position of Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Jadard Technology.
Diversification Opportunities for Suofeiya Home and Jadard Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suofeiya and Jadard is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard Technology and Suofeiya Home 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 Suofeiya Home Collection are associated (or correlated) with Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Suofeiya Home i.e., Suofeiya Home and Jadard Technology go up and down completely randomly.
Pair Corralation between Suofeiya Home and Jadard Technology
Assuming the 90 days trading horizon Suofeiya Home is expected to generate 3.85 times less return on investment than Jadard Technology. But when comparing it to its historical volatility, Suofeiya Home Collection is 1.65 times less risky than Jadard Technology. It trades about 0.02 of its potential returns per unit of risk. Jadard Technology A is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Jadard Technology A on September 12, 2024 and sell it today you would earn a total of 626.00 from holding Jadard Technology A or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Jadard Technology A
Performance |
| Timeline |
| Suofeiya Home Collection |
| Jadard Technology |
Suofeiya Home and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Jadard Technology
The main advantage of trading using opposite Suofeiya Home and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home position performs unexpectedly, Jadard Technology 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 Jadard Technology will offset losses from the drop in Jadard Technology's long position.| Suofeiya Home vs. Lutian Machinery Co | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Bank of China | Suofeiya Home vs. Gansu Jiu Steel |
| Jadard Technology vs. Beijing Mainstreets Investment | Jadard Technology vs. Qumei Furniture Group | Jadard Technology vs. Suofeiya Home Collection | Jadard Technology vs. Shanghai Shuixing Home |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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