Correlation Between JIAHUA STORES and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and SIEMENS AG 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 SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and SIEMENS AG SP, you can compare the effects of market volatilities on JIAHUA STORES and SIEMENS AG 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 SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and SIEMENS AG.
Diversification Opportunities for JIAHUA STORES and SIEMENS AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and SIEMENS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP 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 SIEMENS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS AG SP has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and SIEMENS AG go up and down completely randomly.
Pair Corralation between JIAHUA STORES and SIEMENS AG
If you would invest 9,450 in SIEMENS AG SP on October 15, 2024 and sell it today you would earn a total of 250.00 from holding SIEMENS AG SP or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
JIAHUA STORES vs. SIEMENS AG SP
Performance |
| Timeline |
| JIAHUA STORES |
| SIEMENS AG SP |
JIAHUA STORES and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and SIEMENS AG
The main advantage of trading using opposite JIAHUA STORES and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, SIEMENS AG 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 SIEMENS AG will offset losses from the drop in SIEMENS AG's long position.| JIAHUA STORES vs. TELECOM ITALRISP ADR10 | JIAHUA STORES vs. Computershare Limited | JIAHUA STORES vs. ALERION CLEANPOWER | JIAHUA STORES vs. COMPUTERSHARE |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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