Correlation Between Jourdeness and Luo Lih
Can any of the company-specific risk be diversified away by investing in both Jourdeness and Luo Lih 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 Jourdeness and Luo Lih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jourdeness Group and Luo Lih Fen, you can compare the effects of market volatilities on Jourdeness and Luo Lih 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 Jourdeness with a short position of Luo Lih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jourdeness and Luo Lih.
Diversification Opportunities for Jourdeness and Luo Lih
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jourdeness and Luo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jourdeness Group and Luo Lih Fen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luo Lih Fen and Jourdeness 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 Jourdeness Group are associated (or correlated) with Luo Lih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luo Lih Fen has no effect on the direction of Jourdeness i.e., Jourdeness and Luo Lih go up and down completely randomly.
Pair Corralation between Jourdeness and Luo Lih
Assuming the 90 days trading horizon Jourdeness Group is expected to generate 1.14 times more return on investment than Luo Lih. However, Jourdeness is 1.14 times more volatile than Luo Lih Fen. It trades about -0.03 of its potential returns per unit of risk. Luo Lih Fen is currently generating about -0.11 per unit of risk. If you would invest 4,730 in Jourdeness Group on September 24, 2024 and sell it today you would lose (260.00) from holding Jourdeness Group or give up 5.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jourdeness Group vs. Luo Lih Fen
Performance |
Timeline |
Jourdeness Group |
Luo Lih Fen |
Jourdeness and Luo Lih Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jourdeness and Luo Lih
The main advantage of trading using opposite Jourdeness and Luo Lih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jourdeness position performs unexpectedly, Luo Lih 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 Luo Lih will offset losses from the drop in Luo Lih's long position.Jourdeness vs. Taisun Enterprise Co | Jourdeness vs. De Licacy Industrial | Jourdeness vs. Wisher Industrial Co | Jourdeness vs. Tainan Enterprises Co |
Luo Lih vs. Chlitina Holding | Luo Lih vs. Taiyen Biotech Co | Luo Lih vs. Nan Liu Enterprise | Luo Lih vs. DRWu Skincare Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |