Correlation Between JIAHUA STORES and AVITA Medical
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and AVITA Medical 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 AVITA Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and AVITA Medical, you can compare the effects of market volatilities on JIAHUA STORES and AVITA Medical 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 AVITA Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and AVITA Medical.
Diversification Opportunities for JIAHUA STORES and AVITA Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and AVITA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and AVITA Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVITA Medical 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 AVITA Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVITA Medical has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and AVITA Medical go up and down completely randomly.
Pair Corralation between JIAHUA STORES and AVITA Medical
If you would invest 212.00 in AVITA Medical on September 12, 2024 and sell it today you would earn a total of 32.00 from holding AVITA Medical or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. AVITA Medical
Performance |
| Timeline |
| JIAHUA STORES |
| AVITA Medical |
JIAHUA STORES and AVITA Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and AVITA Medical
The main advantage of trading using opposite JIAHUA STORES and AVITA Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, AVITA Medical 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 AVITA Medical will offset losses from the drop in AVITA Medical's long position.| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
| AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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