Correlation Between FORMPIPE SOFTWARE and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both FORMPIPE SOFTWARE and JIAHUA STORES 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 FORMPIPE SOFTWARE and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORMPIPE SOFTWARE AB and JIAHUA STORES, you can compare the effects of market volatilities on FORMPIPE SOFTWARE and JIAHUA STORES 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 FORMPIPE SOFTWARE with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORMPIPE SOFTWARE and JIAHUA STORES.
Diversification Opportunities for FORMPIPE SOFTWARE and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FORMPIPE and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FORMPIPE SOFTWARE AB and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and FORMPIPE SOFTWARE 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 FORMPIPE SOFTWARE AB are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of FORMPIPE SOFTWARE i.e., FORMPIPE SOFTWARE and JIAHUA STORES go up and down completely randomly.
Pair Corralation between FORMPIPE SOFTWARE and JIAHUA STORES
If you would invest 1.90 in JIAHUA STORES on October 30, 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 |
FORMPIPE SOFTWARE AB vs. JIAHUA STORES
Performance |
| Timeline |
| FORMPIPE SOFTWARE |
| JIAHUA STORES |
FORMPIPE SOFTWARE and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORMPIPE SOFTWARE and JIAHUA STORES
The main advantage of trading using opposite FORMPIPE SOFTWARE and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORMPIPE SOFTWARE position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| FORMPIPE SOFTWARE vs. Ryanair Holdings plc | FORMPIPE SOFTWARE vs. RYANAIR HLDGS ADR | FORMPIPE SOFTWARE vs. FORWARD AIR P | FORMPIPE SOFTWARE vs. QBE Insurance Group |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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