Correlation Between Pure Storage and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Pure Storage and JIAHUA STORES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pure Storage and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Storage and JIAHUA STORES, you can compare the effects of market volatilities on Pure Storage and JIAHUA STORES 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 Pure Storage with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and JIAHUA STORES.
Diversification Opportunities for Pure Storage and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pure and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Pure Storage 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 Pure Storage are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Pure Storage i.e., Pure Storage and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Pure Storage and JIAHUA STORES
If you would invest 6,068 in Pure Storage on October 9, 2024 and sell it today you would earn a total of 24.00 from holding Pure Storage or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pure Storage vs. JIAHUA STORES
Performance |
| Timeline |
| Pure Storage |
| JIAHUA STORES |
Pure Storage and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Storage and JIAHUA STORES
The main advantage of trading using opposite Pure Storage and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Pure Storage vs. SIERRA METALS | Pure Storage vs. Aluminum of | Pure Storage vs. FIREWEED METALS P | Pure Storage vs. Materialise NV |
| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
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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