Correlation Between Jahen Household and Jilin Jlu
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By analyzing existing cross correlation between Jahen Household Products and Jilin Jlu Communication, you can compare the effects of market volatilities on Jahen Household and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Jilin Jlu.
Diversification Opportunities for Jahen Household and Jilin Jlu
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahen and Jilin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Jahen Household i.e., Jahen Household and Jilin Jlu go up and down completely randomly.
Pair Corralation between Jahen Household and Jilin Jlu
Assuming the 90 days trading horizon Jahen Household is expected to generate 1.63 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, Jahen Household Products is 1.08 times less risky than Jilin Jlu. It trades about 0.07 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 657.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 301.00 from holding Jilin Jlu Communication or generate 45.81% 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. Jilin Jlu Communication
Performance |
| Timeline |
| Jahen Household Products |
| Jilin Jlu Communication |
Jahen Household and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Jilin Jlu
The main advantage of trading using opposite Jahen Household and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu'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 |
| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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