Correlation Between Jahen Household and Shanghai CEO
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By analyzing existing cross correlation between Jahen Household Products and Shanghai CEO Environmental, you can compare the effects of market volatilities on Jahen Household and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Shanghai CEO.
Diversification Opportunities for Jahen Household and Shanghai CEO
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Jahen Household i.e., Jahen Household and Shanghai CEO go up and down completely randomly.
Pair Corralation between Jahen Household and Shanghai CEO
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 1.27 times more return on investment than Shanghai CEO. However, Jahen Household is 1.27 times more volatile than Shanghai CEO Environmental. It trades about 0.0 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.02 per unit of risk. If you would invest 1,804 in Jahen Household Products on October 20, 2024 and sell it today you would lose (338.00) from holding Jahen Household Products or give up 18.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Jahen Household Products |
| Shanghai CEO Environ |
Jahen Household and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Shanghai CEO
The main advantage of trading using opposite Jahen Household and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| Jahen Household vs. Guotai Epoint Software | Jahen Household vs. Shanghai Newtouch Software | Jahen Household vs. Vanfund Urban Investment | Jahen Household vs. Luyin Investment Group |
| Shanghai CEO vs. Jahen Household Products | Shanghai CEO vs. Sanxiang Advanced Materials | Shanghai CEO vs. Jiahe Foods Industry | Shanghai CEO vs. Jiajia Food 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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