Correlation Between Guangdong Electric and Jahen Household
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By analyzing existing cross correlation between Guangdong Electric Power and Jahen Household Products, you can compare the effects of market volatilities on Guangdong Electric 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 Electric with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and Jahen Household.
Diversification Opportunities for Guangdong Electric and Jahen Household
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Jahen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power 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 Electric 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 Electric Power 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 Electric i.e., Guangdong Electric and Jahen Household go up and down completely randomly.
Pair Corralation between Guangdong Electric and Jahen Household
Assuming the 90 days trading horizon Guangdong Electric Power is expected to generate 0.28 times more return on investment than Jahen Household. However, Guangdong Electric Power is 3.52 times less risky than Jahen Household. It trades about -0.02 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.02 per unit of risk. If you would invest 219.00 in Guangdong Electric Power on November 1, 2024 and sell it today you would lose (20.00) from holding Guangdong Electric Power or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Electric Power vs. Jahen Household Products
Performance |
| Timeline |
| Guangdong Electric Power |
| Jahen Household Products |
Guangdong Electric and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Electric and Jahen Household
The main advantage of trading using opposite Guangdong Electric and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric 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 Electric vs. Jahen Household Products | Guangdong Electric vs. Guangdong Marubi Biotechnology | Guangdong Electric vs. Bloomage Biotechnology Corp | Guangdong Electric vs. China National Software |
| Jahen Household vs. Changchun Engley Automobile | Jahen Household vs. Sinomach Automobile Co | Jahen Household vs. Chongqing Changan Automobile | Jahen Household vs. Beijing Seeyon Internet |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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