Correlation Between Jahen Household and Fujian Longzhou
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By analyzing existing cross correlation between Jahen Household Products and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Jahen Household and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Fujian Longzhou.
Diversification Opportunities for Jahen Household and Fujian Longzhou
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Fujian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Jahen Household i.e., Jahen Household and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Jahen Household and Fujian Longzhou
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.18 times more return on investment than Fujian Longzhou. However, Jahen Household is 1.18 times more volatile than Fujian Longzhou Transportation. It trades about -0.33 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.52 per unit of risk. If you would invest 1,829 in Jahen Household Products on October 14, 2024 and sell it today you would lose (459.00) from holding Jahen Household Products or give up 25.1% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| Jahen Household Products |
| Fujian Longzhou Tran |
Jahen Household and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Fujian Longzhou
The main advantage of trading using opposite Jahen Household and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Jahen Household vs. HaiXin Foods Co | Jahen Household vs. Guangdong Wens Foodstuff | Jahen Household vs. Eastroc Beverage Group | Jahen Household vs. China World Trade |
| Fujian Longzhou vs. Shanghai Shuixing Home | Fujian Longzhou vs. DO Home Collection | Fujian Longzhou vs. XinJiang GuoTong Pipeline | Fujian Longzhou vs. Jahen Household Products |
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.
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