Correlation Between China Jo and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both China Jo and Ingram Micro 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 China Jo and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Jo Jo Drugstores and Ingram Micro Holding, you can compare the effects of market volatilities on China Jo and Ingram Micro 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 China Jo with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Jo and Ingram Micro.
Diversification Opportunities for China Jo and Ingram Micro
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Ingram is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Jo Jo Drugstores and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding and China Jo 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 China Jo Jo Drugstores are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of China Jo i.e., China Jo and Ingram Micro go up and down completely randomly.
Pair Corralation between China Jo and Ingram Micro
Given the investment horizon of 90 days China Jo Jo Drugstores is expected to under-perform the Ingram Micro. But the stock apears to be less risky and, when comparing its historical volatility, China Jo Jo Drugstores is 35.7 times less risky than Ingram Micro. The stock trades about -0.07 of its potential returns per unit of risk. The Ingram Micro Holding is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Ingram Micro Holding on August 27, 2024 and sell it today you would earn a total of 2,200 from holding Ingram Micro Holding or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 6.43% |
| Values | Daily Returns |
China Jo Jo Drugstores vs. Ingram Micro Holding
Performance |
| Timeline |
| China Jo Jo |
| Ingram Micro Holding |
China Jo and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Jo and Ingram Micro
The main advantage of trading using opposite China Jo and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Jo position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| China Jo vs. SunLink Health Systems | China Jo vs. Leafly Holdings | China Jo vs. Allstar Health Brands | China Jo vs. Walgreens Boots Alliance |
| Ingram Micro vs. Arrow Electronics | Ingram Micro vs. Avnet Inc | Ingram Micro vs. ICZOOM Group Class | Ingram Micro vs. Synnex |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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