Correlation Between Jayud Global and Shengfeng Development
Can any of the company-specific risk be diversified away by investing in both Jayud Global and Shengfeng Development 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 Shengfeng Development 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 Shengfeng Development Limited, you can compare the effects of market volatilities on Jayud Global and Shengfeng Development 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 Shengfeng Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and Shengfeng Development.
Diversification Opportunities for Jayud Global and Shengfeng Development
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jayud and Shengfeng is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Shengfeng Development Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengfeng Development 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 Shengfeng Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengfeng Development has no effect on the direction of Jayud Global i.e., Jayud Global and Shengfeng Development go up and down completely randomly.
Pair Corralation between Jayud Global and Shengfeng Development
Considering the 90-day investment horizon Jayud Global Logistics is expected to under-perform the Shengfeng Development. But the stock apears to be less risky and, when comparing its historical volatility, Jayud Global Logistics is 1.29 times less risky than Shengfeng Development. The stock trades about 0.0 of its potential returns per unit of risk. The Shengfeng Development Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Shengfeng Development Limited on August 28, 2024 and sell it today you would lose (277.00) from holding Shengfeng Development Limited or give up 69.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.66% |
| Values | Daily Returns |
Jayud Global Logistics vs. Shengfeng Development Limited
Performance |
| Timeline |
| Jayud Global Logistics |
| Shengfeng Development |
Jayud Global and Shengfeng Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayud Global and Shengfeng Development
The main advantage of trading using opposite Jayud Global and Shengfeng Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayud Global position performs unexpectedly, Shengfeng Development 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 Shengfeng Development will offset losses from the drop in Shengfeng Development's long position.| Jayud Global vs. Stepan Company | Jayud Global vs. CF Industries Holdings | Jayud Global vs. China Tontine Wines | Jayud Global vs. Diageo PLC ADR |
| Shengfeng Development vs. Jayud Global Logistics | Shengfeng Development vs. Freightos Limited Ordinary | Shengfeng Development vs. Air T Inc | Shengfeng Development vs. Forward Air |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |