Correlation Between JIAHUA STORES and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Jumbo SA 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 Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Jumbo SA, you can compare the effects of market volatilities on JIAHUA STORES and Jumbo SA 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 Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Jumbo SA.
Diversification Opportunities for JIAHUA STORES and Jumbo SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Jumbo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA 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 Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Jumbo SA go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Jumbo SA
If you would invest 2,474 in Jumbo SA on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Jumbo SA or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Jumbo SA
Performance |
| Timeline |
| JIAHUA STORES |
| Jumbo SA |
JIAHUA STORES and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Jumbo SA
The main advantage of trading using opposite JIAHUA STORES and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Jumbo SA 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 Jumbo SA will offset losses from the drop in Jumbo SA's long position.| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
| Jumbo SA vs. ePlay Digital | Jumbo SA vs. NAKED WINES PLC | Jumbo SA vs. THAI BEVERAGE | Jumbo SA vs. United Natural Foods |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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