Correlation Between Jilin Chemical and Heilongjiang Publishing
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By analyzing existing cross correlation between Jilin Chemical Fibre and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Jilin Chemical and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Heilongjiang Publishing.
Diversification Opportunities for Jilin Chemical and Heilongjiang Publishing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Heilongjiang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Jilin Chemical and Heilongjiang Publishing
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Heilongjiang Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.51 times less risky than Heilongjiang Publishing. The stock trades about -0.01 of its potential returns per unit of risk. The Heilongjiang Publishing Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 999.00 in Heilongjiang Publishing Media on September 28, 2024 and sell it today you would earn a total of 527.00 from holding Heilongjiang Publishing Media or generate 52.75% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Heilongjiang Publishing |
Jilin Chemical and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Heilongjiang Publishing
The main advantage of trading using opposite Jilin Chemical and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing'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 |
| Heilongjiang Publishing vs. Ningbo Bohui Chemical | Heilongjiang Publishing vs. Lotus Health Group | Heilongjiang Publishing vs. Meinian Onehealth Healthcare | Heilongjiang Publishing 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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