Correlation Between Jafron Biomedical and Cultural Investment
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By analyzing existing cross correlation between Jafron Biomedical Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Jafron Biomedical and Cultural Investment 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 Jafron Biomedical with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Cultural Investment.
Diversification Opportunities for Jafron Biomedical and Cultural Investment
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jafron and Cultural is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Jafron Biomedical 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 Jafron Biomedical Co are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Cultural Investment go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Cultural Investment
Assuming the 90 days trading horizon Jafron Biomedical Co is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Jafron Biomedical Co is 1.73 times less risky than Cultural Investment. The stock trades about -0.24 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| Jafron Biomedical |
| Cultural Investment |
Jafron Biomedical and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Cultural Investment
The main advantage of trading using opposite Jafron Biomedical and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Jafron Biomedical vs. Industrial and Commercial | Jafron Biomedical vs. Kweichow Moutai Co | Jafron Biomedical vs. Agricultural Bank of | Jafron Biomedical vs. China Mobile Limited |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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