Correlation Between Jiayuan International and IDEXX Laboratories
Can any of the company-specific risk be diversified away by investing in both Jiayuan International and IDEXX Laboratories 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 Jiayuan International and IDEXX Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiayuan International and IDEXX Laboratories, you can compare the effects of market volatilities on Jiayuan International and IDEXX Laboratories 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 Jiayuan International with a short position of IDEXX Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiayuan International and IDEXX Laboratories.
Diversification Opportunities for Jiayuan International and IDEXX Laboratories
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jiayuan and IDEXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiayuan International and IDEXX Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEXX Laboratories and Jiayuan International 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 Jiayuan International are associated (or correlated) with IDEXX Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEXX Laboratories has no effect on the direction of Jiayuan International i.e., Jiayuan International and IDEXX Laboratories go up and down completely randomly.
Pair Corralation between Jiayuan International and IDEXX Laboratories
If you would invest (100.00) in Jiayuan International on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Jiayuan International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jiayuan International vs. IDEXX Laboratories
Performance |
| Timeline |
| Jiayuan International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IDEXX Laboratories |
Jiayuan International and IDEXX Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiayuan International and IDEXX Laboratories
The main advantage of trading using opposite Jiayuan International and IDEXX Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiayuan International position performs unexpectedly, IDEXX Laboratories 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 IDEXX Laboratories will offset losses from the drop in IDEXX Laboratories' long position.| Jiayuan International vs. Daily Journal Corp | Jiayuan International vs. Meta Data | Jiayuan International vs. FTAI Aviation Ltd | Jiayuan International vs. Peoples Educational Holdings |
| IDEXX Laboratories vs. Olink Holding AB | IDEXX Laboratories vs. Sotera Health Co | IDEXX Laboratories vs. RadNet Inc | IDEXX Laboratories vs. BiodesixInc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |