Correlation Between Jahen Household and Shanghai Jinfeng
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By analyzing existing cross correlation between Jahen Household Products and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Jahen Household and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Shanghai Jinfeng.
Diversification Opportunities for Jahen Household and Shanghai Jinfeng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahen and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Jahen Household i.e., Jahen Household and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Jahen Household and Shanghai Jinfeng
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.37 times more return on investment than Shanghai Jinfeng. However, Jahen Household is 1.37 times more volatile than Shanghai Jinfeng Wine. It trades about 0.0 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about -0.01 per unit of risk. If you would invest 2,019 in Jahen Household Products on August 30, 2024 and sell it today you would lose (432.00) from holding Jahen Household Products or give up 21.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Jahen Household Products |
| Shanghai Jinfeng Wine |
Jahen Household and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Shanghai Jinfeng
The main advantage of trading using opposite Jahen Household and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Jahen Household vs. Shandong Gold Mining | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Inner Mongolia BaoTou | Jahen Household vs. Jiangxi Ganfeng Lithium |
| Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China Mobile Limited | Shanghai Jinfeng vs. Ping An Insurance | Shanghai Jinfeng vs. China Petroleum Chemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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