Correlation Between Haima Automobile and Jilin Jlu
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By analyzing existing cross correlation between Haima Automobile Group and Jilin Jlu Communication, you can compare the effects of market volatilities on Haima Automobile and Jilin Jlu 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 Haima Automobile with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Jilin Jlu.
Diversification Opportunities for Haima Automobile and Jilin Jlu
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Jilin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Haima Automobile 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 Haima Automobile Group are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Haima Automobile i.e., Haima Automobile and Jilin Jlu go up and down completely randomly.
Pair Corralation between Haima Automobile and Jilin Jlu
Assuming the 90 days trading horizon Haima Automobile is expected to generate 1.89 times less return on investment than Jilin Jlu. In addition to that, Haima Automobile is 1.14 times more volatile than Jilin Jlu Communication. It trades about 0.01 of its total potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.03 per unit of volatility. If you would invest 801.00 in Jilin Jlu Communication on September 4, 2024 and sell it today you would earn a total of 160.00 from holding Jilin Jlu Communication or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Jilin Jlu Communication
Performance |
| Timeline |
| Haima Automobile |
| Jilin Jlu Communication |
Haima Automobile and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Jilin Jlu
The main advantage of trading using opposite Haima Automobile and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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