Correlation Between American Electric and Jayud Global

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

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

Diversification Opportunities for American Electric and Jayud Global

-0.33

Correlation Coefficient

American Electric  Jayud Global

Very good diversification

The 3 months correlation between American and Jayud is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding American Electric Power and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and American Electric 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 American Electric Power are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of American Electric i.e., American Electric and Jayud Global go up and down completely randomly.

Pair Corralation between American Electric and Jayud Global

Considering the 90-day investment horizon American Electric is expected to generate 1.18 times less return on investment than Jayud Global. But when comparing it to its historical volatility, American Electric Power is 8.57 times less risky than Jayud Global. It trades about 0.11 of its potential returns per unit of risk. Jayud Global Logistics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Jayud Global Logistics on May 7, 2025 and sell it today you would lose (3.00) from holding Jayud Global Logistics or give up 13.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

American Electric Power  vs.  Jayud Global Logistics

American Electric Power

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Electric Power are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, American Electric may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Jayud Global Logistics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Jayud Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with American Electric and Jayud Global

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

The idea behind American Electric Power and Jayud Global 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.