Correlation Between Jilin Jlu and Bank of Nanjing
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By analyzing existing cross correlation between Jilin Jlu Communication and Bank of Nanjing, you can compare the effects of market volatilities on Jilin Jlu and Bank of Nanjing 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 Jlu with a short position of Bank of Nanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Bank of Nanjing.
Diversification Opportunities for Jilin Jlu and Bank of Nanjing
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Bank is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Bank of Nanjing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nanjing and Jilin Jlu 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 Jlu Communication are associated (or correlated) with Bank of Nanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Nanjing has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Bank of Nanjing go up and down completely randomly.
Pair Corralation between Jilin Jlu and Bank of Nanjing
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Bank of Nanjing. In addition to that, Jilin Jlu is 3.5 times more volatile than Bank of Nanjing. It trades about 0.0 of its total potential returns per unit of risk. Bank of Nanjing is currently generating about 0.14 per unit of volatility. If you would invest 1,041 in Bank of Nanjing on September 26, 2024 and sell it today you would earn a total of 28.00 from holding Bank of Nanjing or generate 2.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Jilin Jlu Communication vs. Bank of Nanjing
Performance |
Timeline |
Jilin Jlu Communication |
Bank of Nanjing |
Jilin Jlu and Bank of Nanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and Bank of Nanjing
The main advantage of trading using opposite Jilin Jlu and Bank of Nanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Bank of Nanjing 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 Bank of Nanjing will offset losses from the drop in Bank of Nanjing's long position.Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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