Correlation Between Jahen Household and Chahua Modern
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By analyzing existing cross correlation between Jahen Household Products and Chahua Modern Housewares, you can compare the effects of market volatilities on Jahen Household and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Chahua Modern.
Diversification Opportunities for Jahen Household and Chahua Modern
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jahen and Chahua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Jahen Household i.e., Jahen Household and Chahua Modern go up and down completely randomly.
Pair Corralation between Jahen Household and Chahua Modern
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.24 times more return on investment than Chahua Modern. However, Jahen Household is 1.24 times more volatile than Chahua Modern Housewares. It trades about 0.22 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about -0.05 per unit of risk. If you would invest 1,631 in Jahen Household Products on September 13, 2024 and sell it today you would earn a total of 386.00 from holding Jahen Household Products or generate 23.67% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Jahen Household Products |
| Chahua Modern Housewares |
Jahen Household and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Chahua Modern
The main advantage of trading using opposite Jahen Household and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Agricultural Bank of | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. Bank of China | Chahua Modern vs. PetroChina Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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