Correlation Between JCET Group and Aba Chemicals
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By analyzing existing cross correlation between JCET Group Co and Aba Chemicals Corp, you can compare the effects of market volatilities on JCET Group and Aba Chemicals 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 JCET Group with a short position of Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCET Group and Aba Chemicals.
Diversification Opportunities for JCET Group and Aba Chemicals
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCET and Aba is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding JCET Group Co and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp and JCET Group 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 JCET Group Co are associated (or correlated) with Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of JCET Group i.e., JCET Group and Aba Chemicals go up and down completely randomly.
Pair Corralation between JCET Group and Aba Chemicals
Assuming the 90 days trading horizon JCET Group Co is expected to generate 0.68 times more return on investment than Aba Chemicals. However, JCET Group Co is 1.47 times less risky than Aba Chemicals. It trades about 0.08 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about 0.03 per unit of risk. If you would invest 2,555 in JCET Group Co on October 18, 2024 and sell it today you would earn a total of 1,444 from holding JCET Group Co or generate 56.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
JCET Group Co vs. Aba Chemicals Corp
Performance |
| Timeline |
| JCET Group |
| Aba Chemicals Corp |
JCET Group and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCET Group and Aba Chemicals
The main advantage of trading using opposite JCET Group and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCET Group position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| JCET Group vs. Aba Chemicals Corp | JCET Group vs. Guangdong Marubi Biotechnology | JCET Group vs. Shuhua Sports Co | JCET Group vs. Ningbo MedicalSystem Biotechnology |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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