Correlation Between Jahen Household and Sichuan Jinshi
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By analyzing existing cross correlation between Jahen Household Products and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Jahen Household and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Sichuan Jinshi.
Diversification Opportunities for Jahen Household and Sichuan Jinshi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Sichuan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Jahen Household i.e., Jahen Household and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Jahen Household and Sichuan Jinshi
Assuming the 90 days trading horizon Jahen Household is expected to generate 3.99 times less return on investment than Sichuan Jinshi. But when comparing it to its historical volatility, Jahen Household Products is 1.06 times less risky than Sichuan Jinshi. It trades about 0.04 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 635.00 in Sichuan Jinshi Technology on August 25, 2024 and sell it today you would earn a total of 56.00 from holding Sichuan Jinshi Technology or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Jahen Household Products |
| Sichuan Jinshi Technology |
Jahen Household and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Sichuan Jinshi
The main advantage of trading using opposite Jahen Household and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Jahen Household vs. Zijin Mining Group | Jahen Household vs. Wanhua Chemical Group | Jahen Household vs. Shandong Gold Mining | Jahen Household vs. Inner Mongolia BaoTou |
| Sichuan Jinshi vs. Beijing SPC Environment | Sichuan Jinshi vs. Ye Chiu Metal | Sichuan Jinshi vs. Jahen Household Products | Sichuan Jinshi vs. Shengda Mining 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 Stocks Directory module to find actively traded stocks across global markets.
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