Correlation Between COMINTL BANK and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK 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 COMINTL BANK and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and JIAHUA STORES, you can compare the effects of market volatilities on COMINTL BANK 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 COMINTL BANK with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and JIAHUA STORES.
Diversification Opportunities for COMINTL BANK and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COMINTL and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and COMINTL BANK 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 COMINTL BANK ADR1 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 COMINTL BANK i.e., COMINTL BANK and JIAHUA STORES go up and down completely randomly.
Pair Corralation between COMINTL BANK and JIAHUA STORES
If you would invest 124.00 in COMINTL BANK ADR1 on November 28, 2024 and sell it today you would earn a total of 2.00 from holding COMINTL BANK ADR1 or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. JIAHUA STORES
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| JIAHUA STORES |
COMINTL BANK and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and JIAHUA STORES
The main advantage of trading using opposite COMINTL BANK and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK 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.| COMINTL BANK vs. alstria office REIT AG | COMINTL BANK vs. Infrastrutture Wireless Italiane | COMINTL BANK vs. 24SEVENOFFICE GROUP AB | COMINTL BANK vs. WILLIS LEASE FIN |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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