Correlation Between Jerash Holdings and Ever Glory
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and Ever Glory 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 Jerash Holdings and Ever Glory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and Ever Glory International Group, you can compare the effects of market volatilities on Jerash Holdings and Ever Glory 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 Jerash Holdings with a short position of Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and Ever Glory.
Diversification Opportunities for Jerash Holdings and Ever Glory
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jerash and Ever is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati and Jerash Holdings 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 Jerash Holdings are associated (or correlated) with Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and Ever Glory go up and down completely randomly.
Pair Corralation between Jerash Holdings and Ever Glory
Given the investment horizon of 90 days Jerash Holdings is expected to under-perform the Ever Glory. But the stock apears to be less risky and, when comparing its historical volatility, Jerash Holdings is 29.17 times less risky than Ever Glory. The stock trades about -0.04 of its potential returns per unit of risk. The Ever Glory International Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Ever Glory International Group on January 20, 2024 and sell it today you would lose (114.00) from holding Ever Glory International Group or give up 83.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 42.02% |
| Values | Daily Returns |
Jerash Holdings vs. Ever Glory International Group
Performance |
| Timeline |
| Jerash Holdings |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jerash Holdings and Ever Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and Ever Glory
The main advantage of trading using opposite Jerash Holdings and Ever Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, Ever Glory 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 Ever Glory will offset losses from the drop in Ever Glory's long position.| Jerash Holdings vs. Brunswick | Jerash Holdings vs. BRP Inc | Jerash Holdings vs. VOXX International | Jerash Holdings vs. Vizio Holding Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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