Correlation Between Jilin Chemical and Dongxing Sec
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Chemical Fibre and Dongxing Sec Co, you can compare the effects of market volatilities on Jilin Chemical and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Dongxing Sec.
Diversification Opportunities for Jilin Chemical and Dongxing Sec
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Dongxing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Dongxing Sec go up and down completely randomly.
Pair Corralation between Jilin Chemical and Dongxing Sec
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Dongxing Sec. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.34 times less risky than Dongxing Sec. The stock trades about -0.08 of its potential returns per unit of risk. The Dongxing Sec Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Dongxing Sec Co on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Dongxing Sec Co or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Dongxing Sec Co
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Dongxing Sec |
Jilin Chemical and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Dongxing Sec
The main advantage of trading using opposite Jilin Chemical and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Jilin Chemical vs. Bomesc Offshore Engineering | Jilin Chemical vs. Guangdong Ellington Electronics | Jilin Chemical vs. Jiangyin Jianghua Microelectronics | Jilin Chemical vs. Offshore Oil Engineering |
| Dongxing Sec vs. Xiangyang Automobile Bearing | Dongxing Sec vs. Bank of Communications | Dongxing Sec vs. China Mobile Limited | Dongxing Sec vs. YiDong Electronics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |