Correlation Between National Retail and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and JIAHUA STORES, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and JIAHUA STORES.
Diversification Opportunities for National Retail and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and JIAHUA STORES go up and down completely randomly.
Pair Corralation between National Retail and JIAHUA STORES
If you would invest 3,357 in National Retail Properties on September 14, 2024 and sell it today you would earn a total of 699.00 from holding National Retail Properties or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. JIAHUA STORES
Performance |
| Timeline |
| National Retail Prop |
| JIAHUA STORES |
National Retail and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and JIAHUA STORES
The main advantage of trading using opposite National Retail and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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