Correlation Between Henan Shuanghui and Jilin Jlu
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By analyzing existing cross correlation between Henan Shuanghui Investment and Jilin Jlu Communication, you can compare the effects of market volatilities on Henan Shuanghui and Jilin Jlu 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 Henan Shuanghui with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Jilin Jlu.
Diversification Opportunities for Henan Shuanghui and Jilin Jlu
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Henan and Jilin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Jilin Jlu go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Jilin Jlu
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.48 times more return on investment than Jilin Jlu. However, Henan Shuanghui Investment is 2.08 times less risky than Jilin Jlu. It trades about 0.27 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.07 per unit of risk. If you would invest 2,505 in Henan Shuanghui Investment on December 10, 2024 and sell it today you would earn a total of 134.00 from holding Henan Shuanghui Investment or generate 5.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Jilin Jlu Communication
Performance |
Timeline |
Henan Shuanghui Inve |
Jilin Jlu Communication |
Henan Shuanghui and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Jilin Jlu
The main advantage of trading using opposite Henan Shuanghui and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.Henan Shuanghui vs. HeNan Splendor Science | Henan Shuanghui vs. Invengo Information Technology | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Northking Information Technology |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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