Correlation Between Jilin Chemical and Longxing Chemical
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By analyzing existing cross correlation between Jilin Chemical Fibre and Longxing Chemical Stock, you can compare the effects of market volatilities on Jilin Chemical and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Longxing Chemical.
Diversification Opportunities for Jilin Chemical and Longxing Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jilin and Longxing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Longxing Chemical go up and down completely randomly.
Pair Corralation between Jilin Chemical and Longxing Chemical
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Longxing Chemical. In addition to that, Jilin Chemical is 1.07 times more volatile than Longxing Chemical Stock. It trades about -0.02 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.01 per unit of volatility. If you would invest 554.00 in Longxing Chemical Stock on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Longxing Chemical Stock or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Longxing Chemical Stock
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Longxing Chemical Stock |
Jilin Chemical and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Longxing Chemical
The main advantage of trading using opposite Jilin Chemical and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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