Correlation Between AM EAGLE and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both AM EAGLE 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 AM EAGLE and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and JIAHUA STORES, you can compare the effects of market volatilities on AM EAGLE 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 AM EAGLE with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and JIAHUA STORES.
Diversification Opportunities for AM EAGLE and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFG and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and AM EAGLE 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 AM EAGLE OUTFITTERS 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 AM EAGLE i.e., AM EAGLE and JIAHUA STORES go up and down completely randomly.
Pair Corralation between AM EAGLE and JIAHUA STORES
If you would invest 1.90 in JIAHUA STORES on August 31, 2024 and sell it today you would earn a total of 0.00 from holding JIAHUA STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. JIAHUA STORES
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| JIAHUA STORES |
AM EAGLE and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and JIAHUA STORES
The main advantage of trading using opposite AM EAGLE and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE 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.| AM EAGLE vs. Gaztransport Technigaz SA | AM EAGLE vs. Zoom Video Communications | AM EAGLE vs. BII Railway Transportation | AM EAGLE vs. Warner Music Group |
| JIAHUA STORES vs. Harmony Gold Mining | JIAHUA STORES vs. Cal Maine Foods | JIAHUA STORES vs. United Natural Foods | JIAHUA STORES vs. CN MODERN DAIRY |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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