Correlation Between Ji Haw and Chailease Holding

Can any of the company-specific risk be diversified away by investing in both Ji Haw and Chailease Holding 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 Ji Haw and Chailease Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ji Haw Industrial Co and Chailease Holding Co, you can compare the effects of market volatilities on Ji Haw and Chailease Holding 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 Ji Haw with a short position of Chailease Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Chailease Holding.

Diversification Opportunities for Ji Haw and Chailease Holding

-0.03

Correlation Coefficient

Ji Haw  Chailease Holding

Good diversification

The 3 months correlation between 3011 and Chailease is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Chailease Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chailease Holding and Ji Haw 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 Ji Haw Industrial Co are associated (or correlated) with Chailease Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chailease Holding has no effect on the direction of Ji Haw i.e., Ji Haw and Chailease Holding go up and down completely randomly.

Pair Corralation between Ji Haw and Chailease Holding

Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to under-perform the Chailease Holding. In addition to that, Ji Haw is 1.31 times more volatile than Chailease Holding Co. It trades about -0.23 of its total potential returns per unit of risk. Chailease Holding Co is currently generating about 0.05 per unit of volatility. If you would invest  12,300  in Chailease Holding Co on December 5, 2024 and sell it today you would earn a total of  500.00  from holding Chailease Holding Co or generate 4.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ji Haw Industrial Co  vs.  Chailease Holding Co

Ji Haw Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ji Haw Industrial Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Chailease Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Chailease Holding Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Chailease Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ji Haw and Chailease Holding

The main advantage of trading using opposite Ji Haw and Chailease Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Chailease Holding 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 Chailease Holding will offset losses from the drop in Chailease Holding's long position.

The idea behind Ji Haw Industrial Co and Chailease Holding Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.