Correlation Between Jahen Household and Haima Automobile
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By analyzing existing cross correlation between Jahen Household Products and Haima Automobile Group, you can compare the effects of market volatilities on Jahen Household and Haima Automobile 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 Jahen Household with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Haima Automobile.
Diversification Opportunities for Jahen Household and Haima Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Haima is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jahen Household 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 Jahen Household Products are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Jahen Household i.e., Jahen Household and Haima Automobile go up and down completely randomly.
Pair Corralation between Jahen Household and Haima Automobile
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Jahen Household Products is 1.1 times less risky than Haima Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Haima Automobile Group on September 3, 2024 and sell it today you would lose (73.00) from holding Haima Automobile Group or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Haima Automobile Group
Performance |
| Timeline |
| Jahen Household Products |
| Haima Automobile |
Jahen Household and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Haima Automobile
The main advantage of trading using opposite Jahen Household and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Jahen Household vs. Zijin Mining Group | Jahen Household vs. Baoshan Iron Steel | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Hoshine Silicon Ind |
| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang Publishing Media |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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