Correlation Between Xinjiang Baodi and Jahen Household
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Jahen Household Products, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Jahen Household.
Diversification Opportunities for Xinjiang Baodi and Jahen Household
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Jahen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Jahen Household go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Jahen Household
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.01 times less risky than Jahen Household. The stock trades about -0.19 of its potential returns per unit of risk. The Jahen Household Products is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,405 in Jahen Household Products on November 7, 2024 and sell it today you would earn a total of 74.00 from holding Jahen Household Products or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Jahen Household Products
Performance |
| Timeline |
| Xinjiang Baodi Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jahen Household Products |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xinjiang Baodi and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Jahen Household
The main advantage of trading using opposite Xinjiang Baodi and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.The idea behind Xinjiang Baodi Mining and Jahen Household Products pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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