Correlation Between Jilin Jlu and TianJin 712
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By analyzing existing cross correlation between Jilin Jlu Communication and TianJin 712 Communication, you can compare the effects of market volatilities on Jilin Jlu and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and TianJin 712.
Diversification Opportunities for Jilin Jlu and TianJin 712
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and TianJin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and TianJin 712 go up and down completely randomly.
Pair Corralation between Jilin Jlu and TianJin 712
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.14 times more return on investment than TianJin 712. However, Jilin Jlu is 1.14 times more volatile than TianJin 712 Communication. It trades about 0.02 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about -0.04 per unit of risk. If you would invest 790.00 in Jilin Jlu Communication on September 25, 2024 and sell it today you would earn a total of 114.00 from holding Jilin Jlu Communication or generate 14.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Jlu Communication vs. TianJin 712 Communication
Performance |
Timeline |
Jilin Jlu Communication |
TianJin 712 Communication |
Jilin Jlu and TianJin 712 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and TianJin 712
The main advantage of trading using opposite Jilin Jlu and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.Jilin Jlu vs. Jiangxi Naipu Mining | Jilin Jlu vs. Suzhou Xingye Material | Jilin Jlu vs. Jinsanjiang Silicon Material | Jilin Jlu vs. Hengerda New Materials |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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