Correlation Between China World and Jahen Household
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By analyzing existing cross correlation between China World Trade and Jahen Household Products, you can compare the effects of market volatilities on China World and Jahen Household 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 China World with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Jahen Household.
Diversification Opportunities for China World and Jahen Household
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jahen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products and China World 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 China World Trade are associated (or correlated) with Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of China World i.e., China World and Jahen Household go up and down completely randomly.
Pair Corralation between China World and Jahen Household
Assuming the 90 days trading horizon China World Trade is expected to generate 0.31 times more return on investment than Jahen Household. However, China World Trade is 3.27 times less risky than Jahen Household. It trades about 0.21 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.01 per unit of risk. If you would invest 2,258 in China World Trade on September 29, 2024 and sell it today you would earn a total of 185.00 from holding China World Trade or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Jahen Household Products
Performance |
| Timeline |
| China World Trade |
| Jahen Household Products |
China World and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Jahen Household
The main advantage of trading using opposite China World and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| China World vs. Guosheng Financial Holding | China World vs. Peoples Insurance of | China World vs. Sinofibers Technology Co | China World vs. Unisplendour Corp |
| Jahen Household vs. Allmed Medical Products | Jahen Household vs. Holitech Technology Co | Jahen Household vs. Xiangyu Medical Co | Jahen Household vs. Shenzhen Glory Medical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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