Correlation Between Beijing Enlight and Jahen Household
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By analyzing existing cross correlation between Beijing Enlight Media and Jahen Household Products, you can compare the effects of market volatilities on Beijing Enlight 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 Beijing Enlight with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Jahen Household.
Diversification Opportunities for Beijing Enlight and Jahen Household
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jahen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media 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 Beijing Enlight 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 Beijing Enlight Media 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 Beijing Enlight i.e., Beijing Enlight and Jahen Household go up and down completely randomly.
Pair Corralation between Beijing Enlight and Jahen Household
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.94 times more return on investment than Jahen Household. However, Beijing Enlight Media is 1.06 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 833.00 in Beijing Enlight Media on October 16, 2024 and sell it today you would earn a total of 66.00 from holding Beijing Enlight Media or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Jahen Household Products
Performance |
| Timeline |
| Beijing Enlight Media |
| Jahen Household Products |
Beijing Enlight and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Jahen Household
The main advantage of trading using opposite Beijing Enlight and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight 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.| Beijing Enlight vs. Caihong Display Devices | Beijing Enlight vs. Shenzhen AV Display Co | Beijing Enlight vs. Shuhua Sports Co | Beijing Enlight vs. Eastern Communications Co |
| Jahen Household vs. Sichuan Jinshi Technology | Jahen Household vs. Advanced Technology Materials | Jahen Household vs. Cangzhou Mingzhu Plastic | Jahen Household vs. Tongyu Communication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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