Correlation Between Sixt Leasing and JIAHUA STORES

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Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and JIAHUA STORES, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and JIAHUA STORES.

Diversification Opportunities for Sixt Leasing and JIAHUA STORES

SixtJIAHUADiversified AwaySixtJIAHUADiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sixt and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and JIAHUA STORES go up and down completely randomly.

Pair Corralation between Sixt Leasing and JIAHUA STORES

If you would invest  1.90  in JIAHUA STORES on November 18, 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Sixt Leasing SE  vs.  JIAHUA STORES

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -8-6-4-2
JavaScript chart by amCharts 3.21.15LNSX DG9
       Timeline  
Sixt Leasing SE 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sixt Leasing SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sixt Leasing is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb8.899.29.49.69.8
JIAHUA STORES 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days JIAHUA STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, JIAHUA STORES is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0190.0195

Sixt Leasing and JIAHUA STORES Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.76-2.07-1.37-0.680.00.651.31.952.59 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15LNSX DG9
       Returns  

Pair Trading with Sixt Leasing and JIAHUA STORES

The main advantage of trading using opposite Sixt Leasing and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.
The idea behind Sixt Leasing SE and JIAHUA STORES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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