Correlation Between JIAHUA STORES and Carsales
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Carsales 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 Carsales into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and CarsalesCom, you can compare the effects of market volatilities on JIAHUA STORES and Carsales 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 Carsales. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Carsales.
Diversification Opportunities for JIAHUA STORES and Carsales
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Carsales is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and CarsalesCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarsalesCom 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 Carsales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarsalesCom has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Carsales go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Carsales
If you would invest 1.90 in JIAHUA STORES on October 16, 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 | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. CarsalesCom
Performance |
| Timeline |
| JIAHUA STORES |
| CarsalesCom |
JIAHUA STORES and Carsales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Carsales
The main advantage of trading using opposite JIAHUA STORES and Carsales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Carsales 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 Carsales will offset losses from the drop in Carsales' 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 |
| Carsales vs. JIAHUA STORES | Carsales vs. DEVRY EDUCATION GRP | Carsales vs. Adtalem Global Education | Carsales vs. AEON STORES |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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