Correlation Between New Residential and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both New Residential and JIAHUA STORES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining New Residential and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and JIAHUA STORES, you can compare the effects of market volatilities on New Residential and JIAHUA STORES 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 New Residential with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and JIAHUA STORES.
Diversification Opportunities for New Residential and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and New Residential 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 New Residential Investment are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of New Residential i.e., New Residential and JIAHUA STORES go up and down completely randomly.
Pair Corralation between New Residential and JIAHUA STORES
If you would invest 652.00 in New Residential Investment on September 5, 2024 and sell it today you would earn a total of 405.00 from holding New Residential Investment or generate 62.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
New Residential Investment vs. JIAHUA STORES
Performance |
| Timeline |
| New Residential Inve |
| JIAHUA STORES |
New Residential and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Residential and JIAHUA STORES
The main advantage of trading using opposite New Residential and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| New Residential vs. Webster Financial | New Residential vs. QUICKSTEP HLDGS | New Residential vs. Air China Limited | New Residential vs. Broadcom |
| JIAHUA STORES vs. TOTAL GABON | JIAHUA STORES vs. Walgreens Boots Alliance | JIAHUA STORES vs. Peak Resources Limited |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |