Correlation Between Heilongjiang Transport and Jahen Household
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By analyzing existing cross correlation between Heilongjiang Transport Development and Jahen Household Products, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Jahen Household.
Diversification Opportunities for Heilongjiang Transport and Jahen Household
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Jahen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop 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 Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and Jahen Household go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Jahen Household
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Transport Development is 1.84 times less risky than Jahen Household. The stock trades about -0.15 of its potential returns per unit of risk. The Jahen Household Products is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Jahen Household Products on October 22, 2024 and sell it today you would lose (62.00) from holding Jahen Household Products or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Jahen Household Products
Performance |
| Timeline |
| Heilongjiang Transport |
| Jahen Household Products |
Heilongjiang Transport and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Jahen Household
The main advantage of trading using opposite Heilongjiang Transport and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. Jinling Hotel Corp | Heilongjiang Transport vs. Tianshui Huatian Technology | Heilongjiang Transport vs. Holitech Technology Co | Heilongjiang Transport vs. BTG Hotels Group |
| Jahen Household vs. Shengda Mining Co | Jahen Household vs. JCHX Mining Management | Jahen Household vs. Heilongjiang Transport Development | Jahen Household vs. Lander Sports Development |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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