Correlation Between JIAHUA STORES and Strer SE
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Strer SE 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 Strer SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Strer SE Co, you can compare the effects of market volatilities on JIAHUA STORES and Strer SE 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 Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Strer SE.
Diversification Opportunities for JIAHUA STORES and Strer SE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Strer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE 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 Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Strer SE go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Strer SE
If you would invest 4,842 in Strer SE Co on November 18, 2024 and sell it today you would earn a total of 868.00 from holding Strer SE Co or generate 17.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
JIAHUA STORES vs. Strer SE Co
Performance |
Timeline |
JIAHUA STORES |
Strer SE |
JIAHUA STORES and Strer SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JIAHUA STORES and Strer SE
The main advantage of trading using opposite JIAHUA STORES and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.JIAHUA STORES vs. Direct Line Insurance | ||
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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