Correlation Between JIADE LIMITED and CSP

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

By analyzing existing cross correlation between JIADE LIMITED Common and CSP Inc, you can compare the effects of market volatilities on JIADE LIMITED and CSP 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 JIADE LIMITED with a short position of CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIADE LIMITED and CSP.

Diversification Opportunities for JIADE LIMITED and CSP

0.89

Correlation Coefficient

JIADE LIMITED  CSP

Very poor diversification

The 3 months correlation between JIADE and CSP is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and JIADE LIMITED 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 JIADE LIMITED Common are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of JIADE LIMITED i.e., JIADE LIMITED and CSP go up and down completely randomly.

Pair Corralation between JIADE LIMITED and CSP

Given the investment horizon of 90 days JIADE LIMITED Common is expected to generate 2.7 times more return on investment than CSP. However, JIADE LIMITED is 2.7 times more volatile than CSP Inc. It trades about 0.03 of its potential returns per unit of risk. CSP Inc is currently generating about 0.01 per unit of risk. If you would invest  688.00  in JIADE LIMITED Common on April 21, 2025 and sell it today you would lose (389.00) from holding JIADE LIMITED Common or give up 56.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

JIADE LIMITED Common  vs.  CSP Inc

JIADE LIMITED Common

Risk-Adjusted Performance

Very Weak

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

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with JIADE LIMITED and CSP

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

The idea behind JIADE LIMITED Common and CSP Inc 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.