Correlation Between Apple and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and JIAHUA STORES, you can compare the effects of market volatilities on Apple 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 Apple with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and JIAHUA STORES.
Diversification Opportunities for Apple and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Apple 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 Apple Inc 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 Apple i.e., Apple and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Apple and JIAHUA STORES
If you would invest 21,145 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,570 from holding Apple Inc or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. JIAHUA STORES
Performance |
| Timeline |
| Apple Inc |
| JIAHUA STORES |
Apple and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and JIAHUA STORES
The main advantage of trading using opposite Apple and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Entravision Communications | Apple vs. NORTHEAST UTILITIES | Apple vs. Tower One Wireless | Apple vs. Highlight Communications AG |
| JIAHUA STORES vs. CEOTRONICS | JIAHUA STORES vs. SALESFORCE INC CDR | JIAHUA STORES vs. CeoTronics AG | JIAHUA STORES vs. CODERE ONLINE LUX |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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