Correlation Between Addentax Group and Jayud Global
Can any of the company-specific risk be diversified away by investing in both Addentax Group and Jayud Global 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 Addentax Group and Jayud Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addentax Group Corp and Jayud Global Logistics, you can compare the effects of market volatilities on Addentax Group and Jayud Global 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 Addentax Group with a short position of Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and Jayud Global.
Diversification Opportunities for Addentax Group and Jayud Global
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Addentax and Jayud is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and Addentax Group 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 Addentax Group Corp are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Addentax Group i.e., Addentax Group and Jayud Global go up and down completely randomly.
Pair Corralation between Addentax Group and Jayud Global
Given the investment horizon of 90 days Addentax Group Corp is expected to under-perform the Jayud Global. But the stock apears to be less risky and, when comparing its historical volatility, Addentax Group Corp is 4.02 times less risky than Jayud Global. The stock trades about -0.16 of its potential returns per unit of risk. The Jayud Global Logistics is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Jayud Global Logistics on November 5, 2024 and sell it today you would earn a total of 109.00 from holding Jayud Global Logistics or generate 44.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Addentax Group Corp vs. Jayud Global Logistics
Performance |
| Timeline |
| Addentax Group Corp |
| Jayud Global Logistics |
Addentax Group and Jayud Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and Jayud Global
The main advantage of trading using opposite Addentax Group and Jayud Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group position performs unexpectedly, Jayud Global 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 Jayud Global will offset losses from the drop in Jayud Global's long position.| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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