Correlation Between ASPEN TECHINC and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC 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 ASPEN TECHINC and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and JIAHUA STORES, you can compare the effects of market volatilities on ASPEN TECHINC 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 ASPEN TECHINC with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and JIAHUA STORES.
Diversification Opportunities for ASPEN TECHINC and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASPEN and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and ASPEN TECHINC 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 ASPEN TECHINC DL 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 ASPEN TECHINC i.e., ASPEN TECHINC and JIAHUA STORES go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and JIAHUA STORES
If you would invest 23,400 in ASPEN TECHINC DL on October 16, 2024 and sell it today you would earn a total of 800.00 from holding ASPEN TECHINC DL or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. JIAHUA STORES
Performance |
| Timeline |
| ASPEN TECHINC DL |
| JIAHUA STORES |
ASPEN TECHINC and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and JIAHUA STORES
The main advantage of trading using opposite ASPEN TECHINC and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC 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.| ASPEN TECHINC vs. FIH MOBILE | ASPEN TECHINC vs. Vishay Intertechnology | ASPEN TECHINC vs. SCOTT TECHNOLOGY | ASPEN TECHINC vs. Align Technology |
| JIAHUA STORES vs. USU Software AG | JIAHUA STORES vs. FORMPIPE SOFTWARE AB | JIAHUA STORES vs. Fair Isaac Corp | JIAHUA STORES vs. OPERA SOFTWARE |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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