Correlation Between China Baoan and Jilin Jlu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Baoan Group and Jilin Jlu Communication, you can compare the effects of market volatilities on China Baoan 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 China Baoan with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Baoan and Jilin Jlu.
Diversification Opportunities for China Baoan and Jilin Jlu
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jilin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Baoan Group 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 China Baoan 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 China Baoan Group 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 China Baoan i.e., China Baoan and Jilin Jlu go up and down completely randomly.
Pair Corralation between China Baoan and Jilin Jlu
Assuming the 90 days trading horizon China Baoan Group is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, China Baoan Group is 2.28 times less risky than Jilin Jlu. The stock trades about -0.4 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Jilin Jlu Communication on November 1, 2024 and sell it today you would lose (9.00) from holding Jilin Jlu Communication or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Baoan Group vs. Jilin Jlu Communication
Performance |
| Timeline |
| China Baoan Group |
| Jilin Jlu Communication |
China Baoan and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Baoan and Jilin Jlu
The main advantage of trading using opposite China Baoan and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Baoan 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.| China Baoan vs. Jilin Jlu Communication | China Baoan vs. Eastern Communications Co | China Baoan vs. Beijing Kingsoft Office | China Baoan vs. Queclink Wireless Solutions |
| Jilin Jlu vs. Zhangjiagang Elegant Home | Jilin Jlu vs. Eyebright Medical Technology | Jilin Jlu vs. Vohringer Home Technology | Jilin Jlu vs. Montage Technology Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |