Correlation Between Sunny Loan and Jahen Household
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By analyzing existing cross correlation between Sunny Loan Top and Jahen Household Products, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Jahen Household.
Diversification Opportunities for Sunny Loan and Jahen Household
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Jahen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top 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 Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Jahen Household go up and down completely randomly.
Pair Corralation between Sunny Loan and Jahen Household
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Sunny Loan Top is 1.82 times less risky than Jahen Household. The stock trades about -0.04 of its potential returns per unit of risk. The Jahen Household Products is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Jahen Household Products on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Jahen Household Products or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Jahen Household Products
Performance |
| Timeline |
| Sunny Loan Top |
| Jahen Household Products |
Sunny Loan and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Jahen Household
The main advantage of trading using opposite Sunny Loan and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Lutian Machinery Co | Sunny Loan vs. PetroChina Co Ltd | Sunny Loan vs. Bank of China | Sunny Loan vs. Gansu Jiu Steel |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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