Correlation Between Stepan and JIADE LIMITED

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

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

Diversification Opportunities for Stepan and JIADE LIMITED

0.15

Correlation Coefficient

Stepan  JIADE LIMITED

Average diversification

The 3 months correlation between Stepan and JIADE is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and JIADE LIMITED Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIADE LIMITED Common and Stepan 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 Stepan Company are associated (or correlated) with JIADE LIMITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIADE LIMITED Common has no effect on the direction of Stepan i.e., Stepan and JIADE LIMITED go up and down completely randomly.

Pair Corralation between Stepan and JIADE LIMITED

Considering the 90-day investment horizon Stepan Company is expected to generate 0.24 times more return on investment than JIADE LIMITED. However, Stepan Company is 4.15 times less risky than JIADE LIMITED. It trades about -0.06 of its potential returns per unit of risk. JIADE LIMITED Common is currently generating about -0.11 per unit of risk. If you would invest  5,568  in Stepan Company on May 16, 2025 and sell it today you would lose (500.00) from holding Stepan Company or give up 8.98% of portfolio value over 90 days.

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

Stepan Company  vs.  JIADE LIMITED Common

Stepan Company

Risk-Adjusted Performance

Weakest

Over the last 90 days Stepan Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

JIADE LIMITED Common

Risk-Adjusted Performance

Weakest

Over the last 90 days JIADE LIMITED Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Stepan and JIADE LIMITED

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

The idea behind Stepan Company and JIADE LIMITED Common 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.