Correlation Between Jilin OLED and Guangzhou Tinci
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By analyzing existing cross correlation between Jilin OLED Material and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Jilin OLED and Guangzhou Tinci 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 OLED with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin OLED and Guangzhou Tinci.
Diversification Opportunities for Jilin OLED and Guangzhou Tinci
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Guangzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jilin OLED Material and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials and Jilin OLED 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 OLED Material are associated (or correlated) with Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Jilin OLED i.e., Jilin OLED and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Jilin OLED and Guangzhou Tinci
Assuming the 90 days trading horizon Jilin OLED Material is expected to generate 1.39 times more return on investment than Guangzhou Tinci. However, Jilin OLED is 1.39 times more volatile than Guangzhou Tinci Materials. It trades about -0.01 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.03 per unit of risk. If you would invest 2,254 in Jilin OLED Material on December 25, 2024 and sell it today you would lose (108.00) from holding Jilin OLED Material or give up 4.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.28% |
Values | Daily Returns |
Jilin OLED Material vs. Guangzhou Tinci Materials
Performance |
Timeline |
Jilin OLED Material |
Guangzhou Tinci Materials |
Jilin OLED and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin OLED and Guangzhou Tinci
The main advantage of trading using opposite Jilin OLED and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin OLED position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.Jilin OLED vs. CITIC Metal Co | Jilin OLED vs. Aluminum Corp of | Jilin OLED vs. Zhejiang Yongjin Metal | Jilin OLED vs. Earth Panda Advanced Magnetic |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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