Correlation Between JIAHUA STORES and Blue Sky
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Blue Sky 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 Blue Sky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Blue Sky Uranium, you can compare the effects of market volatilities on JIAHUA STORES and Blue Sky 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 Blue Sky. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Blue Sky.
Diversification Opportunities for JIAHUA STORES and Blue Sky
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Blue Sky Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sky Uranium 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 Blue Sky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sky Uranium has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Blue Sky go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Blue Sky
If you would invest 2.90 in Blue Sky Uranium on December 4, 2024 and sell it today you would earn a total of 2.08 from holding Blue Sky Uranium or generate 71.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JIAHUA STORES vs. Blue Sky Uranium
Performance |
Timeline |
JIAHUA STORES |
Blue Sky Uranium |
JIAHUA STORES and Blue Sky Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JIAHUA STORES and Blue Sky
The main advantage of trading using opposite JIAHUA STORES and Blue Sky positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Blue Sky 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 Blue Sky will offset losses from the drop in Blue Sky's long position.JIAHUA STORES vs. Cass Information Systems | JIAHUA STORES vs. MOUNT GIBSON IRON | JIAHUA STORES vs. NTT DATA | JIAHUA STORES vs. TOMBADOR IRON LTD |
Blue Sky vs. IMPERIAL TOBACCO | Blue Sky vs. Japan Tobacco | Blue Sky vs. Endeavour Mining PLC | Blue Sky vs. Harmony Gold Mining |
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 CEOs Directory module to screen CEOs from public companies around the world.
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