Correlation Between Whitehaven Coal and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Whitehaven Coal 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 Whitehaven Coal and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitehaven Coal Limited and JIAHUA STORES, you can compare the effects of market volatilities on Whitehaven Coal 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 Whitehaven Coal with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitehaven Coal and JIAHUA STORES.
Diversification Opportunities for Whitehaven Coal and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whitehaven and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whitehaven Coal Limited and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Whitehaven Coal 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 Whitehaven Coal Limited 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 Whitehaven Coal i.e., Whitehaven Coal and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Whitehaven Coal and JIAHUA STORES
If you would invest 1.90 in JIAHUA STORES on October 24, 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 Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whitehaven Coal Limited vs. JIAHUA STORES
Performance |
| Timeline |
| Whitehaven Coal |
| JIAHUA STORES |
Whitehaven Coal and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitehaven Coal and JIAHUA STORES
The main advantage of trading using opposite Whitehaven Coal and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitehaven Coal 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.| Whitehaven Coal vs. JIAHUA STORES | Whitehaven Coal vs. TYSON FOODS A | Whitehaven Coal vs. CAL MAINE FOODS | Whitehaven Coal vs. H2O Retailing |
| JIAHUA STORES vs. MOBILE FACTORY INC | JIAHUA STORES vs. United Insurance Holdings | JIAHUA STORES vs. HANOVER INSURANCE | JIAHUA STORES vs. Universal Insurance Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |