Correlation Between Jayud Global and Proficient Auto

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

By analyzing existing cross correlation between Jayud Global Logistics and Proficient Auto Logistics,, you can compare the effects of market volatilities on Jayud Global and Proficient Auto 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 Jayud Global with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayud Global and Proficient Auto.

Diversification Opportunities for Jayud Global and Proficient Auto

0.72

Correlation Coefficient

Jayud Global  Proficient Auto

Poor diversification

The 3 months correlation between Jayud and Proficient is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Jayud Global 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 Jayud Global Logistics are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Jayud Global i.e., Jayud Global and Proficient Auto go up and down completely randomly.

Pair Corralation between Jayud Global and Proficient Auto

Considering the 90-day investment horizon Jayud Global Logistics is expected to under-perform the Proficient Auto. In addition to that, Jayud Global is 3.61 times more volatile than Proficient Auto Logistics,. It trades about -0.15 of its total potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.31 per unit of volatility. If you would invest  1,475  in Proficient Auto Logistics, on March 28, 2024 and sell it today you would earn a total of  198.00  from holding Proficient Auto Logistics, or generate 13.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	53.23%
Values	Daily Returns

Jayud Global Logistics  vs.  Proficient Auto Logistics,

Jayud Global Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jayud Global Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Proficient Auto Logi

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jayud Global and Proficient Auto

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

The idea behind Jayud Global Logistics and Proficient Auto Logistics, 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.