Correlation Between Jilin Chemical and Chenzhou Jingui
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By analyzing existing cross correlation between Jilin Chemical Fibre and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Jilin Chemical and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Chenzhou Jingui.
Diversification Opportunities for Jilin Chemical and Chenzhou Jingui
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Chenzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Jilin Chemical and Chenzhou Jingui
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Chenzhou Jingui. In addition to that, Jilin Chemical is 1.01 times more volatile than Chenzhou Jingui Silver. It trades about -0.01 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.02 per unit of volatility. If you would invest 317.00 in Chenzhou Jingui Silver on October 27, 2024 and sell it today you would earn a total of 38.00 from holding Chenzhou Jingui Silver or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Chenzhou Jingui Silver |
Jilin Chemical and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Chenzhou Jingui
The main advantage of trading using opposite Jilin Chemical and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Jilin Chemical vs. Haima Automobile Group | Jilin Chemical vs. China Mobile Limited | Jilin Chemical vs. Shaanxi Broadcast TV | Jilin Chemical vs. Road Environment Technology |
| Chenzhou Jingui vs. Tongyu Communication | Chenzhou Jingui vs. Bank of Communications | Chenzhou Jingui vs. Hangzhou Pinming Software | Chenzhou Jingui vs. Runjian Communication 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 Stocks Directory module to find actively traded stocks across global markets.
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