Correlation Between Jianzhi Education and KB Home
Can any of the company-specific risk be diversified away by investing in both Jianzhi Education and KB Home 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 Jianzhi Education and KB Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jianzhi Education Technology and KB Home, you can compare the effects of market volatilities on Jianzhi Education and KB Home 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 Jianzhi Education with a short position of KB Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and KB Home.
Diversification Opportunities for Jianzhi Education and KB Home
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jianzhi and KBH is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and KB Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Home and Jianzhi Education 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 Jianzhi Education Technology are associated (or correlated) with KB Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Home has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and KB Home go up and down completely randomly.
Pair Corralation between Jianzhi Education and KB Home
Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to generate 4.19 times more return on investment than KB Home. However, Jianzhi Education is 4.19 times more volatile than KB Home. It trades about 0.09 of its potential returns per unit of risk. KB Home is currently generating about 0.14 per unit of risk. If you would invest 96.00 in Jianzhi Education Technology on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Jianzhi Education Technology or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jianzhi Education Technology vs. KB Home
Performance |
| Timeline |
| Jianzhi Education |
| KB Home |
Jianzhi Education and KB Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jianzhi Education and KB Home
The main advantage of trading using opposite Jianzhi Education and KB Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianzhi Education position performs unexpectedly, KB Home 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 KB Home will offset losses from the drop in KB Home's long position.| Jianzhi Education vs. QuantaSing Group Limited | Jianzhi Education vs. Elite Education Group | Jianzhi Education vs. Genius Group | Jianzhi Education vs. Wah Fu Education |
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
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance |