Correlation Between China Jo and 111
Can any of the company-specific risk be diversified away by investing in both China Jo and 111 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 111 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 111 Inc, you can compare the effects of market volatilities on China Jo and 111 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 111. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Jo and 111.
Diversification Opportunities for China Jo and 111
Average diversification
The 3 months correlation between China and 111 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Jo Jo Drugstores and 111 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 111 Inc 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 111. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 111 Inc has no effect on the direction of China Jo i.e., China Jo and 111 go up and down completely randomly.
Pair Corralation between China Jo and 111
Given the investment horizon of 90 days China Jo Jo Drugstores is expected to generate 1.12 times more return on investment than 111. However, China Jo is 1.12 times more volatile than 111 Inc. It trades about 0.08 of its potential returns per unit of risk. 111 Inc is currently generating about -0.07 per unit of risk. If you would invest 160.00 in China Jo Jo Drugstores on August 23, 2024 and sell it today you would earn a total of 38.00 from holding China Jo Jo Drugstores or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Jo Jo Drugstores vs. 111 Inc
Performance |
| Timeline |
| China Jo Jo |
| 111 Inc |
China Jo and 111 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Jo and 111
The main advantage of trading using opposite China Jo and 111 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Jo position performs unexpectedly, 111 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 111 will offset losses from the drop in 111'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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