Correlation Between JIAHUA STORES and Pure Storage
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Pure Storage 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 Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Pure Storage, you can compare the effects of market volatilities on JIAHUA STORES and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Pure Storage.
Diversification Opportunities for JIAHUA STORES and Pure Storage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Pure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Pure Storage go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Pure Storage
If you would invest 6,068 in Pure Storage on October 8, 2024 and sell it today you would earn a total of 24.00 from holding Pure Storage or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Pure Storage
Performance |
| Timeline |
| JIAHUA STORES |
| Pure Storage |
JIAHUA STORES and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Pure Storage
The main advantage of trading using opposite JIAHUA STORES and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
| Pure Storage vs. SIERRA METALS | Pure Storage vs. Aluminum of | Pure Storage vs. FIREWEED METALS P | Pure Storage vs. Materialise NV |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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