Correlation Between JIAHUA STORES and CHIBA BANK
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and CHIBA BANK 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 CHIBA BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and CHIBA BANK, you can compare the effects of market volatilities on JIAHUA STORES and CHIBA BANK 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 CHIBA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and CHIBA BANK.
Diversification Opportunities for JIAHUA STORES and CHIBA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and CHIBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and CHIBA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIBA BANK 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 CHIBA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIBA BANK has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and CHIBA BANK go up and down completely randomly.
Pair Corralation between JIAHUA STORES and CHIBA BANK
If you would invest 770.00 in CHIBA BANK on November 28, 2024 and sell it today you would earn a total of 100.00 from holding CHIBA BANK or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JIAHUA STORES vs. CHIBA BANK
Performance |
| Timeline |
| JIAHUA STORES |
| CHIBA BANK |
JIAHUA STORES and CHIBA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and CHIBA BANK
The main advantage of trading using opposite JIAHUA STORES and CHIBA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, CHIBA BANK 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 CHIBA BANK will offset losses from the drop in CHIBA BANK's long position.| JIAHUA STORES vs. INSURANCE AUST GRP | JIAHUA STORES vs. United Airlines Holdings | JIAHUA STORES vs. VIENNA INSURANCE GR | JIAHUA STORES vs. ZURICH INSURANCE GROUP |
| CHIBA BANK vs. FARO TECHNOLOGIES | CHIBA BANK vs. ACCSYS TECHPLC EO | CHIBA BANK vs. Entravision Communications | CHIBA BANK vs. Verizon Communications |
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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