Correlation Between Jourdeness and San Neng
Can any of the company-specific risk be diversified away by investing in both Jourdeness and San Neng 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 Jourdeness and San Neng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jourdeness Group and San Neng Group, you can compare the effects of market volatilities on Jourdeness and San Neng 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 Jourdeness with a short position of San Neng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jourdeness and San Neng.
Diversification Opportunities for Jourdeness and San Neng
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jourdeness and San is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jourdeness Group and San Neng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Neng Group and Jourdeness 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 Jourdeness Group are associated (or correlated) with San Neng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Neng Group has no effect on the direction of Jourdeness i.e., Jourdeness and San Neng go up and down completely randomly.
Pair Corralation between Jourdeness and San Neng
Assuming the 90 days trading horizon Jourdeness Group is expected to under-perform the San Neng. In addition to that, Jourdeness is 1.86 times more volatile than San Neng Group. It trades about -0.15 of its total potential returns per unit of risk. San Neng Group is currently generating about 0.02 per unit of volatility. If you would invest 4,160 in San Neng Group on October 23, 2024 and sell it today you would earn a total of 10.00 from holding San Neng Group or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jourdeness Group vs. San Neng Group
Performance |
| Timeline |
| Jourdeness Group |
| San Neng Group |
Jourdeness and San Neng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jourdeness and San Neng
The main advantage of trading using opposite Jourdeness and San Neng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jourdeness position performs unexpectedly, San Neng 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 San Neng will offset losses from the drop in San Neng's long position.| Jourdeness vs. Chlitina Holding | Jourdeness vs. All Cosmos Bio Tech | Jourdeness vs. Maxigen Biotech | Jourdeness vs. Grape King Bio |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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