Correlation Between Jahen Household and Iat Automobile
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By analyzing existing cross correlation between Jahen Household Products and Iat Automobile Technology, you can compare the effects of market volatilities on Jahen Household and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Iat Automobile.
Diversification Opportunities for Jahen Household and Iat Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Iat is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Jahen Household i.e., Jahen Household and Iat Automobile go up and down completely randomly.
Pair Corralation between Jahen Household and Iat Automobile
Assuming the 90 days trading horizon Jahen Household is expected to generate 7.87 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Jahen Household Products is 1.14 times less risky than Iat Automobile. It trades about 0.0 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,121 in Iat Automobile Technology on September 14, 2024 and sell it today you would earn a total of 202.00 from holding Iat Automobile Technology or generate 18.02% 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. Iat Automobile Technology
Performance |
| Timeline |
| Jahen Household Products |
| Iat Automobile Technology |
Jahen Household and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Iat Automobile
The main advantage of trading using opposite Jahen Household and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Jahen Household vs. China Sports Industry | Jahen Household vs. Hainan Haiqi Transportation | Jahen Household vs. Sino Platinum Metals Co | Jahen Household vs. Aluminum Corp of |
| Iat Automobile vs. Cofoe Medical Technology | Iat Automobile vs. China Asset Management | Iat Automobile vs. Vanfund Urban Investment | Iat Automobile vs. Zoje Resources Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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