Correlation Between Jahen Household and Shandong Hongchuang
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By analyzing existing cross correlation between Jahen Household Products and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Jahen Household and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Shandong Hongchuang.
Diversification Opportunities for Jahen Household and Shandong Hongchuang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahen and Shandong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Jahen Household i.e., Jahen Household and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Jahen Household and Shandong Hongchuang
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Shandong Hongchuang. In addition to that, Jahen Household is 1.4 times more volatile than Shandong Hongchuang Aluminum. It trades about -0.02 of its total potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.06 per unit of volatility. If you would invest 432.00 in Shandong Hongchuang Aluminum on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Shandong Hongchuang Aluminum or generate 69.44% 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. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Jahen Household Products |
| Shandong Hongchuang |
Jahen Household and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Shandong Hongchuang
The main advantage of trading using opposite Jahen Household and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang'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 |
| Shandong Hongchuang vs. Zijin Mining Group | Shandong Hongchuang vs. Baoshan Iron Steel | Shandong Hongchuang vs. Rongsheng Petrochemical Co | Shandong Hongchuang vs. Hoshine Silicon Ind |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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