Correlation Between JIAHUA STORES and Umicore SA
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Umicore SA 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 Umicore SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Umicore SA, you can compare the effects of market volatilities on JIAHUA STORES and Umicore SA 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 Umicore SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Umicore SA.
Diversification Opportunities for JIAHUA STORES and Umicore SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Umicore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Umicore SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umicore SA 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 Umicore SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umicore SA has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Umicore SA go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Umicore SA
If you would invest 1.90 in JIAHUA STORES on September 5, 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 | 95.65% |
| Values | Daily Returns |
JIAHUA STORES vs. Umicore SA
Performance |
| Timeline |
| JIAHUA STORES |
| Umicore SA |
JIAHUA STORES and Umicore SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Umicore SA
The main advantage of trading using opposite JIAHUA STORES and Umicore SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Umicore SA 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 Umicore SA will offset losses from the drop in Umicore SA's long position.| JIAHUA STORES vs. TOTAL GABON | JIAHUA STORES vs. Walgreens Boots Alliance | JIAHUA STORES vs. Peak Resources Limited |
| Umicore SA vs. Live Nation Entertainment | Umicore SA vs. Marie Brizard Wine | Umicore SA vs. REMEDY ENTERTAINMENT OYJ | Umicore SA vs. XLMedia PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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