Correlation Between AUPU Home and Jahen Household
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By analyzing existing cross correlation between AUPU Home Style and Jahen Household Products, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Jahen Household.
Diversification Opportunities for AUPU Home and Jahen Household
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUPU and Jahen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style 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 AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Jahen Household go up and down completely randomly.
Pair Corralation between AUPU Home and Jahen Household
Assuming the 90 days trading horizon AUPU Home is expected to generate 1.31 times less return on investment than Jahen Household. But when comparing it to its historical volatility, AUPU Home Style is 1.66 times less risky than Jahen Household. It trades about 0.27 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,479 in Jahen Household Products on November 28, 2024 and sell it today you would earn a total of 106.00 from holding Jahen Household Products or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Jahen Household Products
Performance |
| Timeline |
| AUPU Home Style |
| Jahen Household Products |
AUPU Home and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Jahen Household
The main advantage of trading using opposite AUPU Home and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.| AUPU Home vs. Shandong Longquan Pipeline | AUPU Home vs. Zoy Home Furnishing | AUPU Home vs. Fiberhome Telecommunication Technologies | AUPU Home vs. Bohai Leasing Co |
| Jahen Household vs. Shandong Homey Aquatic | Jahen Household vs. Hubei Tech Semiconductors | Jahen Household vs. Jason Furniture | Jahen Household vs. Markor International Home |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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