Correlation Between Jilin Chemical and Guangzhou Seagull
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By analyzing existing cross correlation between Jilin Chemical Fibre and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Jilin Chemical and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Guangzhou Seagull.
Diversification Opportunities for Jilin Chemical and Guangzhou Seagull
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Guangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Jilin Chemical and Guangzhou Seagull
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.96 times less risky than Guangzhou Seagull. The stock trades about -0.53 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Guangzhou Seagull Kitchen on October 14, 2024 and sell it today you would lose (78.00) from holding Guangzhou Seagull Kitchen or give up 21.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Guangzhou Seagull Kitchen |
Jilin Chemical and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Guangzhou Seagull
The main advantage of trading using opposite Jilin Chemical and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Guangzhou Seagull 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 Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Jilin Chemical vs. Dawning Information Industry | Jilin Chemical vs. Bonree Data Technology | Jilin Chemical vs. Jointo Energy Investment | Jilin Chemical vs. Shenzhen SDG Information |
| Guangzhou Seagull vs. Jilin Chemical Fibre | Guangzhou Seagull vs. Sichuan Hebang Biotechnology | Guangzhou Seagull vs. Changchun BCHT Biotechnology | Guangzhou Seagull vs. Dymatic Chemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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