Correlation Between Zhongtong Guomai and Jahen Household
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jahen Household Products, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jahen Household.
Diversification Opportunities for Zhongtong Guomai and Jahen Household
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Jahen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Jahen Household go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jahen Household
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 6.81 times less return on investment than Jahen Household. In addition to that, Zhongtong Guomai is 1.76 times more volatile than Jahen Household Products. It trades about 0.01 of its total potential returns per unit of risk. Jahen Household Products is currently generating about 0.14 per unit of volatility. If you would invest 1,532 in Jahen Household Products on September 5, 2024 and sell it today you would earn a total of 102.00 from holding Jahen Household Products or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Jahen Household Products
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jahen Household Products |
Zhongtong Guomai and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jahen Household
The main advantage of trading using opposite Zhongtong Guomai and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. 360 Security Technology | Zhongtong Guomai vs. Tianshui Huatian Technology | Zhongtong Guomai vs. Sinofibers Technology Co | Zhongtong Guomai vs. Hoshine Silicon Ind |
| Jahen Household vs. Guangzhou KingTeller Technology | Jahen Household vs. ButOne Information Corp | Jahen Household vs. Northking Information Technology | Jahen Household vs. Changchun UP Optotech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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