Correlation Between JIAHUA STORES and DONGJIANG ENVIRONMENTAL
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and DONGJIANG ENVIRONMENTAL H, you can compare the effects of market volatilities on JIAHUA STORES and DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and DONGJIANG ENVIRONMENTAL.
Diversification Opportunities for JIAHUA STORES and DONGJIANG ENVIRONMENTAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and DONGJIANG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and DONGJIANG ENVIRONMENTAL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGJIANG ENVIRONMENTAL has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and DONGJIANG ENVIRONMENTAL go up and down completely randomly.
Pair Corralation between JIAHUA STORES and DONGJIANG ENVIRONMENTAL
If you would invest 1.90 in JIAHUA STORES on October 16, 2024 and sell it today you would earn a total of 0.00 from holding JIAHUA STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
JIAHUA STORES vs. DONGJIANG ENVIRONMENTAL H
Performance |
| Timeline |
| JIAHUA STORES |
| DONGJIANG ENVIRONMENTAL |
JIAHUA STORES and DONGJIANG ENVIRONMENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and DONGJIANG ENVIRONMENTAL
The main advantage of trading using opposite JIAHUA STORES and DONGJIANG ENVIRONMENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL will offset losses from the drop in DONGJIANG ENVIRONMENTAL's long position.| JIAHUA STORES vs. USU Software AG | JIAHUA STORES vs. FORMPIPE SOFTWARE AB | JIAHUA STORES vs. Fair Isaac Corp | JIAHUA STORES vs. OPERA SOFTWARE |
| DONGJIANG ENVIRONMENTAL vs. QUEEN S ROAD | DONGJIANG ENVIRONMENTAL vs. Scottish Mortgage Investment | DONGJIANG ENVIRONMENTAL vs. PennantPark Investment | DONGJIANG ENVIRONMENTAL vs. Chuangs China Investments |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |