Correlation Between Jianzhi Education and Chefs Warehouse

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

By analyzing existing cross correlation between Jianzhi Education Technology and The Chefs Warehouse, you can compare the effects of market volatilities on Jianzhi Education and Chefs Warehouse 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 Jianzhi Education with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Chefs Warehouse.

Diversification Opportunities for Jianzhi Education and Chefs Warehouse

-0.77

Correlation Coefficient

Jianzhi Education  Chefs Warehouse

Pay attention - limited upside

The 3 months correlation between Jianzhi and Chefs is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and Jianzhi Education 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 Jianzhi Education Technology are associated (or correlated) with Chefs Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chefs Warehouse has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and Chefs Warehouse go up and down completely randomly.

Pair Corralation between Jianzhi Education and Chefs Warehouse

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to under-perform the Chefs Warehouse. In addition to that, Jianzhi Education is 3.82 times more volatile than The Chefs Warehouse. It trades about -0.26 of its total potential returns per unit of risk. The Chefs Warehouse is currently generating about 0.07 per unit of volatility. If you would invest  5,697  in The Chefs Warehouse on April 30, 2025 and sell it today you would earn a total of  459.00  from holding The Chefs Warehouse or generate 8.06% return on investment over 90 days.

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

Jianzhi Education Technology  vs.  The Chefs Warehouse

Jianzhi Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jianzhi Education Technology 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 fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Chefs Warehouse

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Chefs Warehouse are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Chefs Warehouse may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jianzhi Education and Chefs Warehouse

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

The idea behind Jianzhi Education Technology and The Chefs Warehouse 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.