Correlation Between Jayud Global and Royal Mail
Can any of the company-specific risk be diversified away by investing in both Jayud Global and Royal Mail 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 Jayud Global and Royal Mail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jayud Global Logistics and Royal Mail Plc, you can compare the effects of market volatilities on Jayud Global and Royal Mail 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 Jayud Global with a short position of Royal Mail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and Royal Mail.
Diversification Opportunities for Jayud Global and Royal Mail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jayud and Royal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Royal Mail Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Mail Plc and Jayud Global 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 Jayud Global Logistics are associated (or correlated) with Royal Mail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Mail Plc has no effect on the direction of Jayud Global i.e., Jayud Global and Royal Mail go up and down completely randomly.
Pair Corralation between Jayud Global and Royal Mail
Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 2.88 times more return on investment than Royal Mail. However, Jayud Global is 2.88 times more volatile than Royal Mail Plc. It trades about 0.04 of its potential returns per unit of risk. Royal Mail Plc is currently generating about 0.07 per unit of risk. If you would invest 400.00 in Jayud Global Logistics on November 5, 2024 and sell it today you would lose (29.00) from holding Jayud Global Logistics or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 40.31% |
| Values | Daily Returns |
Jayud Global Logistics vs. Royal Mail Plc
Performance |
| Timeline |
| Jayud Global Logistics |
| Royal Mail Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jayud Global and Royal Mail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayud Global and Royal Mail
The main advantage of trading using opposite Jayud Global and Royal Mail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global position performs unexpectedly, Royal Mail 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 Royal Mail will offset losses from the drop in Royal Mail's long position.| Jayud Global vs. Nexstar Broadcasting Group | Jayud Global vs. Taiwan Semiconductor Manufacturing | Jayud Global vs. Mattel Inc | Jayud Global vs. Here Media |
| Royal Mail vs. Freightos Limited Ordinary | Royal Mail vs. Addentax Group Corp | Royal Mail vs. United Parcel Service | Royal Mail vs. GXO Logistics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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