Correlation Between Global Ship and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Global Ship and JIAHUA STORES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Global Ship and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and JIAHUA STORES, you can compare the effects of market volatilities on Global Ship and JIAHUA STORES 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 Global Ship with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and JIAHUA STORES.
Diversification Opportunities for Global Ship and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Global Ship 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 Global Ship Lease are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Global Ship i.e., Global Ship and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Global Ship and JIAHUA STORES
If you would invest 1,763 in Global Ship Lease on November 1, 2024 and sell it today you would earn a total of 243.00 from holding Global Ship Lease or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. JIAHUA STORES
Performance |
| Timeline |
| Global Ship Lease |
| JIAHUA STORES |
Global Ship and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and JIAHUA STORES
The main advantage of trading using opposite Global Ship and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Global Ship vs. United Airlines Holdings | Global Ship vs. Micron Technology | Global Ship vs. JAPAN AIRLINES | Global Ship vs. MACOM Technology Solutions |
| JIAHUA STORES vs. Singapore Airlines Limited | JIAHUA STORES vs. United Airlines Holdings | JIAHUA STORES vs. Synchrony Financial | JIAHUA STORES vs. S E BANKEN A |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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