Correlation Between PVH Corp and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both PVH Corp and Jiangsu Expressway 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 PVH Corp and Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PVH Corp and Jiangsu Expressway, you can compare the effects of market volatilities on PVH Corp and Jiangsu Expressway 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 PVH Corp with a short position of Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVH Corp and Jiangsu Expressway.
Diversification Opportunities for PVH Corp and Jiangsu Expressway
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PVH and Jiangsu is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PVH Corp and Jiangsu Expressway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway and PVH Corp 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 PVH Corp are associated (or correlated) with Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of PVH Corp i.e., PVH Corp and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between PVH Corp and Jiangsu Expressway
Considering the 90-day investment horizon PVH Corp is expected to generate 0.83 times more return on investment than Jiangsu Expressway. However, PVH Corp is 1.2 times less risky than Jiangsu Expressway. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Expressway is currently generating about -0.21 per unit of risk. If you would invest 9,883 in PVH Corp on August 30, 2024 and sell it today you would earn a total of 805.00 from holding PVH Corp or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PVH Corp vs. Jiangsu Expressway
Performance |
| Timeline |
| PVH Corp |
| Jiangsu Expressway |
PVH Corp and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PVH Corp and Jiangsu Expressway
The main advantage of trading using opposite PVH Corp and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVH Corp position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway's long position.| PVH Corp vs. VF Corporation | PVH Corp vs. Levi Strauss Co | PVH Corp vs. Under Armour A | PVH Corp vs. Columbia Sportswear |
| Jiangsu Expressway vs. Verra Mobility Corp | Jiangsu Expressway vs. HUMANA INC | Jiangsu Expressway vs. Aquagold International | Jiangsu Expressway vs. Barloworld Ltd ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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