Correlation Between Sichuan Jinshi and Jahen Household
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Jahen Household Products, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Jahen Household.
Diversification Opportunities for Sichuan Jinshi and Jahen Household
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Jahen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 Sichuan Jinshi 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 Sichuan Jinshi Technology 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 Sichuan Jinshi i.e., Sichuan Jinshi and Jahen Household go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Jahen Household
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Jinshi Technology is 1.8 times less risky than Jahen Household. The stock trades about -0.12 of its potential returns per unit of risk. The Jahen Household Products is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Jahen Household Products on October 30, 2024 and sell it today you would lose (122.00) from holding Jahen Household Products or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Jahen Household Products
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Jahen Household Products |
Sichuan Jinshi and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Jahen Household
The main advantage of trading using opposite Sichuan Jinshi and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Xiandai Investment Co | Sichuan Jinshi vs. Nuode Investment Co | Sichuan Jinshi vs. Harbin Hatou Investment | Sichuan Jinshi vs. Postal Savings Bank |
| Jahen Household vs. Western Mining Co | Jahen Household vs. Xinjiang Baodi Mining | Jahen Household vs. Shanghai Rongtai Health | Jahen Household vs. Dezhan HealthCare 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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