Correlation Between Jilin Chemical and Unisplendour Corp
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By analyzing existing cross correlation between Jilin Chemical Fibre and Unisplendour Corp, you can compare the effects of market volatilities on Jilin Chemical and Unisplendour Corp 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 Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Unisplendour Corp.
Diversification Opportunities for Jilin Chemical and Unisplendour Corp
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Unisplendour is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp 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 Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Jilin Chemical and Unisplendour Corp
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Unisplendour Corp. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.2 times less risky than Unisplendour Corp. The stock trades about -0.02 of its potential returns per unit of risk. The Unisplendour Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,487 in Unisplendour Corp on August 28, 2024 and sell it today you would lose (42.00) from holding Unisplendour Corp or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Unisplendour Corp
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Unisplendour Corp |
Jilin Chemical and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Unisplendour Corp
The main advantage of trading using opposite Jilin Chemical and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp'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 |
| Unisplendour Corp vs. BYD Co Ltd | Unisplendour Corp vs. China Mobile Limited | Unisplendour Corp vs. Agricultural Bank of | Unisplendour Corp vs. Industrial and Commercial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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