Correlation Between JIAHUA STORES and Fortive
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Fortive 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 Fortive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Fortive, you can compare the effects of market volatilities on JIAHUA STORES and Fortive 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 Fortive. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Fortive.
Diversification Opportunities for JIAHUA STORES and Fortive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Fortive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Fortive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortive 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 Fortive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortive has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Fortive go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Fortive
If you would invest 7,024 in Fortive on September 14, 2024 and sell it today you would earn a total of 384.00 from holding Fortive or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Fortive
Performance |
| Timeline |
| JIAHUA STORES |
| Fortive |
JIAHUA STORES and Fortive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Fortive
The main advantage of trading using opposite JIAHUA STORES and Fortive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Fortive 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 Fortive will offset losses from the drop in Fortive's long position.| JIAHUA STORES vs. MINCO SILVER | JIAHUA STORES vs. ASSOC BR FOODS | JIAHUA STORES vs. ADRIATIC METALS LS 013355 | JIAHUA STORES vs. HF FOODS GRP |
| Fortive vs. Lifeway Foods | Fortive vs. SPARTAN STORES | Fortive vs. COFCO Joycome Foods | Fortive vs. JIAHUA STORES |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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