Correlation Between JIAHUA STORES and GuocoLand
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and GuocoLand 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 GuocoLand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and GuocoLand Limited, you can compare the effects of market volatilities on JIAHUA STORES and GuocoLand 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 GuocoLand. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and GuocoLand.
Diversification Opportunities for JIAHUA STORES and GuocoLand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and GuocoLand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and GuocoLand Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuocoLand Limited 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 GuocoLand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuocoLand Limited has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and GuocoLand go up and down completely randomly.
Pair Corralation between JIAHUA STORES and GuocoLand
If you would invest 103.00 in GuocoLand Limited on September 1, 2024 and sell it today you would earn a total of 3.00 from holding GuocoLand Limited or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. GuocoLand Limited
Performance |
| Timeline |
| JIAHUA STORES |
| GuocoLand Limited |
JIAHUA STORES and GuocoLand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and GuocoLand
The main advantage of trading using opposite JIAHUA STORES and GuocoLand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, GuocoLand 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 GuocoLand will offset losses from the drop in GuocoLand'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 |
| GuocoLand vs. ARROW ELECTRONICS | GuocoLand vs. Nucletron Electronic Aktiengesellschaft | GuocoLand vs. Computer And Technologies | GuocoLand vs. Meiko Electronics Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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