Correlation Between Wuhan Yangtze and Jahen Household
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Jahen Household Products, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Jahen Household.
Diversification Opportunities for Wuhan Yangtze and Jahen Household
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Jahen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Jahen Household go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Jahen Household
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.22 times more return on investment than Jahen Household. However, Wuhan Yangtze is 1.22 times more volatile than Jahen Household Products. It trades about 0.22 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.18 per unit of risk. If you would invest 2,327 in Wuhan Yangtze Communication on September 12, 2024 and sell it today you would earn a total of 653.00 from holding Wuhan Yangtze Communication or generate 28.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Jahen Household Products
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Jahen Household Products |
Wuhan Yangtze and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Jahen Household
The main advantage of trading using opposite Wuhan Yangtze and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Gansu Jiu Steel | Wuhan Yangtze vs. Shandong Mining Machinery | Wuhan Yangtze vs. Aba Chemicals Corp | Wuhan Yangtze vs. BlueFocus Communication Group |
| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Guangdong Shenglu Telecommunication | Jahen Household vs. Tongyu Communication | Jahen Household vs. FSPG Hi Tech Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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