Correlation Between Yingde Greatchem and Jahen Household
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Jahen Household Products, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Jahen Household.
Diversification Opportunities for Yingde Greatchem and Jahen Household
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and Jahen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Jahen Household go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Jahen Household
Assuming the 90 days trading horizon Yingde Greatchem is expected to generate 11.97 times less return on investment than Jahen Household. But when comparing it to its historical volatility, Yingde Greatchem Chemicals is 2.36 times less risky than Jahen Household. It trades about 0.04 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,631 in Jahen Household Products on September 13, 2024 and sell it today you would earn a total of 386.00 from holding Jahen Household Products or generate 23.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Jahen Household Products
Performance |
| Timeline |
| Yingde Greatchem Che |
| Jahen Household Products |
Yingde Greatchem and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Jahen Household
The main advantage of trading using opposite Yingde Greatchem and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Jahen Household vs. Jiangxi JDL Environmental | Jahen Household vs. Qiaoyin Environmental Tech | Jahen Household vs. Elite Color Environmental | Jahen Household vs. Guangdong Liantai Environmental |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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