Correlation Between Jahen Household and Bus Online
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jahen Household Products and Bus Online Co, you can compare the effects of market volatilities on Jahen Household and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Bus Online.
Diversification Opportunities for Jahen Household and Bus Online
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Bus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Jahen Household i.e., Jahen Household and Bus Online go up and down completely randomly.
Pair Corralation between Jahen Household and Bus Online
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Bus Online. But the stock apears to be less risky and, when comparing its historical volatility, Jahen Household Products is 1.19 times less risky than Bus Online. The stock trades about -0.31 of its potential returns per unit of risk. The Bus Online Co is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Bus Online Co on October 11, 2024 and sell it today you would lose (98.00) from holding Bus Online Co or give up 18.74% 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. Bus Online Co
Performance |
| Timeline |
| Jahen Household Products |
| Bus Online |
Jahen Household and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Bus Online
The main advantage of trading using opposite Jahen Household and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.The idea behind Jahen Household Products and Bus Online Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Bus Online vs. Henan Shuanghui Investment | Bus Online vs. Tieling Newcity Investment | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Beijing HuaYuanYiTong Thermal |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |