Correlation Between Jilin Chemical and JS Corrugating
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By analyzing existing cross correlation between Jilin Chemical Fibre and JS Corrugating Machinery, you can compare the effects of market volatilities on Jilin Chemical and JS Corrugating 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 Chemical with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and JS Corrugating.
Diversification Opportunities for Jilin Chemical and JS Corrugating
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and 000821 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Jilin Chemical 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 Chemical Fibre are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and JS Corrugating go up and down completely randomly.
Pair Corralation between Jilin Chemical and JS Corrugating
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the JS Corrugating. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.13 times less risky than JS Corrugating. The stock trades about 0.0 of its potential returns per unit of risk. The JS Corrugating Machinery is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,408 in JS Corrugating Machinery on September 5, 2024 and sell it today you would earn a total of 13.00 from holding JS Corrugating Machinery or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. JS Corrugating Machinery
Performance |
| Timeline |
| Jilin Chemical Fibre |
| JS Corrugating Machinery |
Jilin Chemical and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and JS Corrugating
The main advantage of trading using opposite Jilin Chemical and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
| JS Corrugating vs. Jiugui Liquor Co | JS Corrugating vs. HaiXin Foods Co | JS Corrugating vs. Xiwang Foodstuffs Co | JS Corrugating vs. Hainan Airlines 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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