Correlation Between Jiangxi JDL and Jahen Household
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Jahen Household Products, you can compare the effects of market volatilities on Jiangxi JDL 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 Jiangxi JDL with a short position of Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Jahen Household.
Diversification Opportunities for Jiangxi JDL and Jahen Household
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Jahen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental 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 Jiangxi JDL 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 Jiangxi JDL Environmental 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 Jiangxi JDL i.e., Jiangxi JDL and Jahen Household go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Jahen Household
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 10.79 times less return on investment than Jahen Household. But when comparing it to its historical volatility, Jiangxi JDL Environmental is 3.16 times less risky than Jahen Household. It trades about 0.05 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,631 in Jahen Household Products on September 13, 2024 and sell it today you would earn a total of 318.00 from holding Jahen Household Products or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Jahen Household Products
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Jahen Household Products |
Jiangxi JDL and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Jahen Household
The main advantage of trading using opposite Jiangxi JDL and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL 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.| Jiangxi JDL vs. Lutian Machinery Co | Jiangxi JDL vs. China Longyuan Power | Jiangxi JDL vs. PetroChina Co Ltd | Jiangxi JDL vs. Bank of China |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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