Correlation Between Proficient Auto and Jayud Global
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and Jayud Global 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 Proficient Auto and Jayud Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and Jayud Global Logistics, you can compare the effects of market volatilities on Proficient Auto and Jayud Global 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 Proficient Auto with a short position of Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Jayud Global.
Diversification Opportunities for Proficient Auto and Jayud Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Proficient and Jayud is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Proficient Auto i.e., Proficient Auto and Jayud Global go up and down completely randomly.
Pair Corralation between Proficient Auto and Jayud Global
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the Jayud Global. But the stock apears to be less risky and, when comparing its historical volatility, Proficient Auto Logistics, is 2.63 times less risky than Jayud Global. The stock trades about -0.05 of its potential returns per unit of risk. The Jayud Global Logistics is currently generating about 0.04 of returns per unit of risk over similar time horizon. 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.2% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Jayud Global Logistics
Performance |
| Timeline |
| Proficient Auto Logi |
| Jayud Global Logistics |
Proficient Auto and Jayud Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Jayud Global
The main advantage of trading using opposite Proficient Auto and Jayud Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, Jayud Global 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 Jayud Global will offset losses from the drop in Jayud Global's long position.| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. BingEx | Proficient Auto vs. Globavend Holdings Limited |
| Jayud Global vs. Nexstar Broadcasting Group | Jayud Global vs. Taiwan Semiconductor Manufacturing | Jayud Global vs. Mattel Inc | Jayud Global vs. Here Media |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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