Correlation Between Jahen Household and Zhongtong Guomai
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By analyzing existing cross correlation between Jahen Household Products and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Jahen Household and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Zhongtong Guomai.
Diversification Opportunities for Jahen Household and Zhongtong Guomai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Zhongtong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Jahen Household i.e., Jahen Household and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Jahen Household and Zhongtong Guomai
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.12 times more return on investment than Zhongtong Guomai. However, Jahen Household is 1.12 times more volatile than Zhongtong Guomai Communication. It trades about 0.23 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.23 per unit of risk. If you would invest 1,164 in Jahen Household Products on September 12, 2024 and sell it today you would earn a total of 853.00 from holding Jahen Household Products or generate 73.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Jahen Household Products vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Jahen Household Products |
| Zhongtong Guomai Com |
Jahen Household and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Zhongtong Guomai
The main advantage of trading using opposite Jahen Household and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Jahen Household vs. Jiangxi JDL Environmental | Jahen Household vs. Qiaoyin Environmental Tech | Jahen Household vs. Elite Color Environmental | Jahen Household vs. Guangdong Liantai Environmental |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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