Correlation Between JIAHUA STORES and Imperial Brands
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Imperial Brands 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 JIAHUA STORES and Imperial Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Imperial Brands PLC, you can compare the effects of market volatilities on JIAHUA STORES and Imperial Brands 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 JIAHUA STORES with a short position of Imperial Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Imperial Brands.
Diversification Opportunities for JIAHUA STORES and Imperial Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Imperial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Imperial Brands PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperial Brands PLC and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with Imperial Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperial Brands PLC has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Imperial Brands go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Imperial Brands
If you would invest 2,723 in Imperial Brands PLC on October 20, 2024 and sell it today you would earn a total of 337.00 from holding Imperial Brands PLC or generate 12.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JIAHUA STORES vs. Imperial Brands PLC
Performance |
Timeline |
JIAHUA STORES |
Imperial Brands PLC |
JIAHUA STORES and Imperial Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JIAHUA STORES and Imperial Brands
The main advantage of trading using opposite JIAHUA STORES and Imperial Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Imperial Brands 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 Imperial Brands will offset losses from the drop in Imperial Brands' long position.JIAHUA STORES vs. Altair Engineering | JIAHUA STORES vs. Delta Air Lines | JIAHUA STORES vs. Alaska Air Group | JIAHUA STORES vs. PRECISION DRILLING P |
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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 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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