Correlation Between JIAHUA STORES and Pacific Basin
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Pacific Basin 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 Pacific Basin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Pacific Basin Shipping, you can compare the effects of market volatilities on JIAHUA STORES and Pacific Basin 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 Pacific Basin. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Pacific Basin.
Diversification Opportunities for JIAHUA STORES and Pacific Basin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Pacific is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Pacific Basin Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Basin Shipping 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 Pacific Basin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Basin Shipping has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Pacific Basin go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Pacific Basin
If you would invest 1.90 in JIAHUA STORES on October 8, 2024 and sell it today you would earn a total of 0.00 from holding JIAHUA STORES or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 93.75% |
Values | Daily Returns |
JIAHUA STORES vs. Pacific Basin Shipping
Performance |
Timeline |
JIAHUA STORES |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pacific Basin Shipping |
JIAHUA STORES and Pacific Basin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JIAHUA STORES and Pacific Basin
The main advantage of trading using opposite JIAHUA STORES and Pacific Basin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Pacific Basin 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 Pacific Basin will offset losses from the drop in Pacific Basin's long position.JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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