Correlation Between Jahen Household and Guangdong Jingyi
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By analyzing existing cross correlation between Jahen Household Products and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jahen Household and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Guangdong Jingyi.
Diversification Opportunities for Jahen Household and Guangdong Jingyi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahen and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jahen Household i.e., Jahen Household and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jahen Household and Guangdong Jingyi
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.44 times more return on investment than Guangdong Jingyi. However, Jahen Household is 1.44 times more volatile than Guangdong Jingyi Metal. It trades about 0.14 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.09 per unit of risk. If you would invest 1,532 in Jahen Household Products on September 4, 2024 and sell it today you would earn a total of 102.00 from holding Jahen Household Products or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jahen Household Products |
| Guangdong Jingyi Metal |
Jahen Household and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Guangdong Jingyi
The main advantage of trading using opposite Jahen Household and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Wuhan Yangtze Communication | Jahen Household vs. Sunny Loan Top | Jahen Household vs. Xinjiang Baodi Mining |
| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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