Correlation Between Jilin Chemical and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Jilin Chemical Fibre and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Jilin Chemical and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Fiberhome Telecommunicatio.
Diversification Opportunities for Jilin Chemical and Fiberhome Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Fiberhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Jilin Chemical and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to generate 1.29 times more return on investment than Fiberhome Telecommunicatio. However, Jilin Chemical is 1.29 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.21 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.13 per unit of risk. If you would invest 336.00 in Jilin Chemical Fibre on August 24, 2024 and sell it today you would earn a total of 57.00 from holding Jilin Chemical Fibre or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Fiberhome Telecommunicatio |
Jilin Chemical and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Fiberhome Telecommunicatio
The main advantage of trading using opposite Jilin Chemical and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Rongsheng Petrochemical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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