Correlation Between JIAHUA STORES and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Gaztransport Technigaz 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 Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Gaztransport Technigaz SA, you can compare the effects of market volatilities on JIAHUA STORES and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Gaztransport Technigaz.
Diversification Opportunities for JIAHUA STORES and Gaztransport Technigaz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Gaztransport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Gaztransport Technigaz
If you would invest 9,557 in Gaztransport Technigaz SA on September 2, 2024 and sell it today you would earn a total of 4,203 from holding Gaztransport Technigaz SA or generate 43.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JIAHUA STORES vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| JIAHUA STORES |
| Gaztransport Technigaz |
JIAHUA STORES and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Gaztransport Technigaz
The main advantage of trading using opposite JIAHUA STORES and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung AG |
| Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. Origin Agritech | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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