Correlation Between Jahen Household and Air China
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By analyzing existing cross correlation between Jahen Household Products and Air China Ltd, you can compare the effects of market volatilities on Jahen Household and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Air China.
Diversification Opportunities for Jahen Household and Air China
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Air is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Jahen Household i.e., Jahen Household and Air China go up and down completely randomly.
Pair Corralation between Jahen Household and Air China
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.41 times more return on investment than Air China. However, Jahen Household is 1.41 times more volatile than Air China Ltd. It trades about 0.14 of its potential returns per unit of risk. Air China Ltd is currently generating about 0.14 per unit of risk. If you would invest 1,532 in Jahen Household Products on September 5, 2024 and sell it today you would earn a total of 102.00 from holding Jahen Household Products or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jahen Household Products vs. Air China Ltd
Performance |
| Timeline |
| Jahen Household Products |
| Air China |
Jahen Household and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Air China
The main advantage of trading using opposite Jahen Household and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Jahen Household vs. Guangzhou KingTeller Technology | Jahen Household vs. ButOne Information Corp | Jahen Household vs. Northking Information Technology | Jahen Household vs. Changchun UP Optotech |
| Air China vs. Agricultural Bank of | Air China vs. Industrial and Commercial | Air China vs. Bank of China | Air China vs. China Construction Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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