Correlation Between JIAHUA STORES and Glatfelter

Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Glatfelter 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 Glatfelter into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JIAHUA STORES and Glatfelter, you can compare the effects of market volatilities on JIAHUA STORES and Glatfelter 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 Glatfelter. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Glatfelter.

Diversification Opportunities for JIAHUA STORES and Glatfelter

0.0

Correlation Coefficient

JIAHUA STORES  Glatfelter

Pay attention - limited upside

The 3 months correlation between JIAHUA and Glatfelter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Glatfelter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glatfelter 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 Glatfelter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glatfelter has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Glatfelter go up and down completely randomly.

Pair Corralation between JIAHUA STORES and Glatfelter

If you would invest  2,032  in Glatfelter on September 28, 2024 and sell it today you would earn a total of  0.00  from holding Glatfelter or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JIAHUA STORES  vs.  Glatfelter

JIAHUA STORES

Risk-Adjusted Performance

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Very Weak

Over the last 90 days JIAHUA STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, JIAHUA STORES is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Glatfelter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glatfelter has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Glatfelter is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JIAHUA STORES and Glatfelter

The main advantage of trading using opposite JIAHUA STORES and Glatfelter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Glatfelter 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 Glatfelter will offset losses from the drop in Glatfelter's long position.

The idea behind JIAHUA STORES and Glatfelter pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.