Correlation Between Jahen Household and Central China
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By analyzing existing cross correlation between Jahen Household Products and Central China Land, you can compare the effects of market volatilities on Jahen Household and Central China 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 Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Central China.
Diversification Opportunities for Jahen Household and Central China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Central is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land 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 Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Jahen Household i.e., Jahen Household and Central China go up and down completely randomly.
Pair Corralation between Jahen Household and Central China
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 2.92 times more return on investment than Central China. However, Jahen Household is 2.92 times more volatile than Central China Land. It trades about -0.04 of its potential returns per unit of risk. Central China Land is currently generating about -0.2 per unit of risk. If you would invest 1,558 in Jahen Household Products on October 22, 2024 and sell it today you would lose (62.00) from holding Jahen Household Products or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jahen Household Products vs. Central China Land
Performance |
| Timeline |
| Jahen Household Products |
| Central China Land |
Jahen Household and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Central China
The main advantage of trading using opposite Jahen Household and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Jahen Household vs. Shengda Mining Co | Jahen Household vs. JCHX Mining Management | Jahen Household vs. Heilongjiang Transport Development | Jahen Household vs. Lander Sports Development |
| Central China vs. Cloud Live Technology | Central China vs. Nanjing Putian Telecommunications | Central China vs. Shenzhen Coship Electronics | Central China vs. Shenzhen Hifuture Electric |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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