Correlation Between Jilin Chemical and Beijing Enlight
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By analyzing existing cross correlation between Jilin Chemical Fibre and Beijing Enlight Media, you can compare the effects of market volatilities on Jilin Chemical and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Beijing Enlight.
Diversification Opportunities for Jilin Chemical and Beijing Enlight
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Beijing Enlight go up and down completely randomly.
Pair Corralation between Jilin Chemical and Beijing Enlight
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Beijing Enlight. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.07 times less risky than Beijing Enlight. The stock trades about -0.25 of its potential returns per unit of risk. The Beijing Enlight Media is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 959.00 in Beijing Enlight Media on October 21, 2024 and sell it today you would lose (29.00) from holding Beijing Enlight Media or give up 3.02% 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. Beijing Enlight Media
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Beijing Enlight Media |
Jilin Chemical and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Beijing Enlight
The main advantage of trading using opposite Jilin Chemical and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| Jilin Chemical vs. Digiwin Software Co | Jilin Chemical vs. Wuhan Yangtze Communication | Jilin Chemical vs. Vontron Technology Co | Jilin Chemical vs. Tianshui Huatian Technology |
| Beijing Enlight vs. State Grid InformationCommunication | Beijing Enlight vs. SSAW Hotels Resorts | Beijing Enlight vs. Jinxiandai Information Industry | Beijing Enlight vs. Sharetronic Data Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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