Correlation Between Jilin Chemical and Jinsanjiang Silicon
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By analyzing existing cross correlation between Jilin Chemical Fibre and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Jilin Chemical and Jinsanjiang Silicon 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 Jilin Chemical with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Jinsanjiang Silicon.
Diversification Opportunities for Jilin Chemical and Jinsanjiang Silicon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Jinsanjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Jilin Chemical and Jinsanjiang Silicon
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to generate 0.85 times more return on investment than Jinsanjiang Silicon. However, Jilin Chemical Fibre is 1.18 times less risky than Jinsanjiang Silicon. It trades about 0.06 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.03 per unit of risk. If you would invest 280.00 in Jilin Chemical Fibre on September 20, 2024 and sell it today you would earn a total of 128.00 from holding Jilin Chemical Fibre or generate 45.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Chemical Fibre vs. Jinsanjiang Silicon Material
Performance |
Timeline |
Jilin Chemical Fibre |
Jinsanjiang Silicon |
Jilin Chemical and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Chemical and Jinsanjiang Silicon
The main advantage of trading using opposite Jilin Chemical and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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