Correlation Between Jilin Chemical and Jiangsu Xinri
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By analyzing existing cross correlation between Jilin Chemical Fibre and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Jilin Chemical and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Jiangsu Xinri.
Diversification Opportunities for Jilin Chemical and Jiangsu Xinri
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Jiangsu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Jilin Chemical and Jiangsu Xinri
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Jiangsu Xinri. In addition to that, Jilin Chemical is 1.4 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.0 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.18 per unit of volatility. If you would invest 1,048 in Jiangsu Xinri E Vehicle on September 5, 2024 and sell it today you would earn a total of 84.00 from holding Jiangsu Xinri E Vehicle or generate 8.02% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Jiangsu Xinri E |
Jilin Chemical and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Jiangsu Xinri
The main advantage of trading using opposite Jilin Chemical and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
| Jiangsu Xinri vs. Ningxia Younglight Chemicals | Jiangsu Xinri vs. Ningxia Building Materials | Jiangsu Xinri vs. Xilong Chemical Co | Jiangsu Xinri vs. Jilin Chemical Fibre |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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