Correlation Between JIAHUA STORES and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Mitsubishi Gas 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 Mitsubishi Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Mitsubishi Gas Chemical, you can compare the effects of market volatilities on JIAHUA STORES and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Mitsubishi Gas.
Diversification Opportunities for JIAHUA STORES and Mitsubishi Gas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Mitsubishi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Mitsubishi Gas
If you would invest 1,280 in Mitsubishi Gas Chemical on October 16, 2024 and sell it today you would earn a total of 370.00 from holding Mitsubishi Gas Chemical or generate 28.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Mitsubishi Gas Chemical
Performance |
| Timeline |
| JIAHUA STORES |
| Mitsubishi Gas Chemical |
JIAHUA STORES and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Mitsubishi Gas
The main advantage of trading using opposite JIAHUA STORES and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' 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 |
| Mitsubishi Gas vs. Burlington Stores | Mitsubishi Gas vs. Pentair plc | Mitsubishi Gas vs. JIAHUA STORES | Mitsubishi Gas vs. ALTAIR RES INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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