Correlation Between Diageo PLC and Jayud Global
Can any of the company-specific risk be diversified away by investing in both Diageo PLC and Jayud Global 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 Diageo PLC and Jayud Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diageo PLC ADR and Jayud Global Logistics, you can compare the effects of market volatilities on Diageo PLC and Jayud Global 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 Diageo PLC with a short position of Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diageo PLC and Jayud Global.
Diversification Opportunities for Diageo PLC and Jayud Global
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Diageo and Jayud is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Diageo PLC ADR and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and Diageo PLC 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 Diageo PLC ADR are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Diageo PLC i.e., Diageo PLC and Jayud Global go up and down completely randomly.
Pair Corralation between Diageo PLC and Jayud Global
Considering the 90-day investment horizon Diageo PLC ADR is expected to under-perform the Jayud Global. But the stock apears to be less risky and, when comparing its historical volatility, Diageo PLC ADR is 5.31 times less risky than Jayud Global. The stock trades about -0.1 of its potential returns per unit of risk. The Jayud Global Logistics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 193.00 in Jayud Global Logistics on December 18, 2024 and sell it today you would earn a total of 198.00 from holding Jayud Global Logistics or generate 102.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Diageo PLC ADR vs. Jayud Global Logistics
Performance |
Timeline |
Diageo PLC ADR |
Jayud Global Logistics |
Diageo PLC and Jayud Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Diageo PLC and Jayud Global
The main advantage of trading using opposite Diageo PLC and Jayud Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diageo PLC position performs unexpectedly, Jayud Global 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 Jayud Global will offset losses from the drop in Jayud Global's long position.Diageo PLC vs. Brown Forman | Diageo PLC vs. MGP Ingredients | Diageo PLC vs. Brown Forman | Diageo PLC vs. Constellation Brands Class |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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