Correlation Between JIAHUA STORES and MedMira
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and MedMira 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 JIAHUA STORES and MedMira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and MedMira, you can compare the effects of market volatilities on JIAHUA STORES and MedMira 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 JIAHUA STORES with a short position of MedMira. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and MedMira.
Diversification Opportunities for JIAHUA STORES and MedMira
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and MedMira is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and MedMira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedMira and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with MedMira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MedMira has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and MedMira go up and down completely randomly.
Pair Corralation between JIAHUA STORES and MedMira
If you would invest 4.65 in MedMira on September 12, 2024 and sell it today you would earn a total of 0.35 from holding MedMira or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. MedMira
Performance |
| Timeline |
| JIAHUA STORES |
| MedMira |
JIAHUA STORES and MedMira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and MedMira
The main advantage of trading using opposite JIAHUA STORES and MedMira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, MedMira 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 MedMira will offset losses from the drop in MedMira's long position.| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
| MedMira vs. Nordic Semiconductor ASA | MedMira vs. Lion One Metals | MedMira vs. BE Semiconductor Industries | MedMira vs. CVW CLEANTECH INC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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