Correlation Between Jilin Chemical and JCET Group
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By analyzing existing cross correlation between Jilin Chemical Fibre and JCET Group Co, you can compare the effects of market volatilities on Jilin Chemical and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and JCET Group.
Diversification Opportunities for Jilin Chemical and JCET Group
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jilin and JCET is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and JCET Group go up and down completely randomly.
Pair Corralation between Jilin Chemical and JCET Group
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the JCET Group. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.67 times less risky than JCET Group. The stock trades about -0.58 of its potential returns per unit of risk. The JCET Group Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,784 in JCET Group Co on October 15, 2024 and sell it today you would earn a total of 224.00 from holding JCET Group Co or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. JCET Group Co
Performance |
| Timeline |
| Jilin Chemical Fibre |
| JCET Group |
Jilin Chemical and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and JCET Group
The main advantage of trading using opposite Jilin Chemical and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Jilin Chemical vs. Dezhan HealthCare Co | Jilin Chemical vs. Healthcare Co | Jilin Chemical vs. Shanghai Rongtai Health | Jilin Chemical vs. Iat Automobile Technology |
| JCET Group vs. Xiangyang Automobile Bearing | JCET Group vs. XinJiang GuoTong Pipeline | JCET Group vs. Fujian Wanchen Biotechnology | JCET Group vs. Wuhan Yangtze Communication |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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