Correlation Between Guangzhou Automobile and Jahen Household
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By analyzing existing cross correlation between Guangzhou Automobile Group and Jahen Household Products, you can compare the effects of market volatilities on Guangzhou Automobile 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 Guangzhou Automobile with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Jahen Household.
Diversification Opportunities for Guangzhou Automobile and Jahen Household
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jahen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group 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 Guangzhou Automobile 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 Guangzhou Automobile Group 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 Guangzhou Automobile i.e., Guangzhou Automobile and Jahen Household go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Jahen Household
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 1.82 times less risky than Jahen Household. The stock trades about -0.01 of its potential returns per unit of risk. The Jahen Household Products is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,343 in Jahen Household Products on September 14, 2024 and sell it today you would lose (394.00) from holding Jahen Household Products or give up 16.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Jahen Household Products
Performance |
| Timeline |
| Guangzhou Automobile |
| Jahen Household Products |
Guangzhou Automobile and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Jahen Household
The main advantage of trading using opposite Guangzhou Automobile and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile 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.| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
| Jahen Household vs. China Sports Industry | Jahen Household vs. Hainan Haiqi Transportation | Jahen Household vs. Sino Platinum Metals Co | Jahen Household vs. Aluminum Corp of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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