Correlation Between Jahen Household and ChengDu Hi
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By analyzing existing cross correlation between Jahen Household Products and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Jahen Household and ChengDu Hi 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 ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and ChengDu Hi.
Diversification Opportunities for Jahen Household and ChengDu Hi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and ChengDu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech 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 ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Jahen Household i.e., Jahen Household and ChengDu Hi go up and down completely randomly.
Pair Corralation between Jahen Household and ChengDu Hi
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.56 times more return on investment than ChengDu Hi. However, Jahen Household is 1.56 times more volatile than ChengDu Hi Tech Development. It trades about 0.21 of its potential returns per unit of risk. ChengDu Hi Tech Development is currently generating about -0.17 per unit of risk. If you would invest 1,644 in Jahen Household Products on September 12, 2024 and sell it today you would earn a total of 373.00 from holding Jahen Household Products or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| Jahen Household Products |
| ChengDu Hi Tech |
Jahen Household and ChengDu Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and ChengDu Hi
The main advantage of trading using opposite Jahen Household and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Guangdong Shenglu Telecommunication | Jahen Household vs. Tongyu Communication | Jahen Household vs. FSPG Hi Tech Co |
| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
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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