Correlation Between MSA Safety and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both MSA Safety 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 MSA Safety and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSA Safety Incorporated and JIAHUA STORES, you can compare the effects of market volatilities on MSA Safety 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 MSA Safety with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSA Safety and JIAHUA STORES.
Diversification Opportunities for MSA Safety and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MSA and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MSA Safety Incorporated and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and MSA Safety 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 MSA Safety Incorporated 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 MSA Safety i.e., MSA Safety and JIAHUA STORES go up and down completely randomly.
Pair Corralation between MSA Safety and JIAHUA STORES
If you would invest 12,383 in MSA Safety Incorporated on October 31, 2024 and sell it today you would earn a total of 3,517 from holding MSA Safety Incorporated or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MSA Safety Incorporated vs. JIAHUA STORES
Performance |
| Timeline |
| MSA Safety |
| JIAHUA STORES |
MSA Safety and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSA Safety and JIAHUA STORES
The main advantage of trading using opposite MSA Safety and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSA Safety 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.| MSA Safety vs. NURAN WIRELESS INC | MSA Safety vs. Chunghwa Telecom Co | MSA Safety vs. Telecom Argentina SA | MSA Safety vs. TELECOM ITALIA |
| JIAHUA STORES vs. Sixt Leasing SE | JIAHUA STORES vs. Haverty Furniture Companies | JIAHUA STORES vs. OFFICE DEPOT | JIAHUA STORES vs. Global Ship Lease |
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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