Correlation Between MARKET VECTR and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR 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 MARKET VECTR and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and JIAHUA STORES, you can compare the effects of market volatilities on MARKET VECTR 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 MARKET VECTR with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and JIAHUA STORES.
Diversification Opportunities for MARKET VECTR and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MARKET and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and MARKET VECTR 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 MARKET VECTR RETAIL 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 MARKET VECTR i.e., MARKET VECTR and JIAHUA STORES go up and down completely randomly.
Pair Corralation between MARKET VECTR and JIAHUA STORES
If you would invest 21,705 in MARKET VECTR RETAIL on November 3, 2024 and sell it today you would earn a total of 1,435 from holding MARKET VECTR RETAIL or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. JIAHUA STORES
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| JIAHUA STORES |
MARKET VECTR and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and JIAHUA STORES
The main advantage of trading using opposite MARKET VECTR and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR 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.| MARKET VECTR vs. Diamyd Medical AB | MARKET VECTR vs. PEPTONIC MEDICAL | MARKET VECTR vs. Gladstone Investment | MARKET VECTR vs. Clearside Biomedical |
| JIAHUA STORES vs. CAIRN HOMES EO | JIAHUA STORES vs. Neinor Homes SA | JIAHUA STORES vs. KENEDIX OFFICE INV | JIAHUA STORES vs. BE Semiconductor Industries |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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