Correlation Between JIAHUA STORES and FIH Mobile
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and FIH Mobile 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 FIH Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and FIH Mobile Limited, you can compare the effects of market volatilities on JIAHUA STORES and FIH Mobile 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 FIH Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and FIH Mobile.
Diversification Opportunities for JIAHUA STORES and FIH Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and FIH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and FIH Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH Mobile 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 FIH Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIH Mobile Limited has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and FIH Mobile go up and down completely randomly.
Pair Corralation between JIAHUA STORES and FIH Mobile
If you would invest 8.90 in FIH Mobile Limited on November 28, 2024 and sell it today you would earn a total of 2.10 from holding FIH Mobile Limited or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JIAHUA STORES vs. FIH Mobile Limited
Performance |
| Timeline |
| JIAHUA STORES |
| FIH Mobile Limited |
JIAHUA STORES and FIH Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and FIH Mobile
The main advantage of trading using opposite JIAHUA STORES and FIH Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, FIH Mobile 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 FIH Mobile will offset losses from the drop in FIH Mobile's long position.| JIAHUA STORES vs. IDP EDUCATION LTD | JIAHUA STORES vs. Yunnan Water Investment | JIAHUA STORES vs. CHINA EDUCATION GROUP | JIAHUA STORES vs. STRAYER EDUCATION |
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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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