Correlation Between Hengli Industrial and Jilin Jlu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Jilin Jlu Communication, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Jilin Jlu.
Diversification Opportunities for Hengli Industrial and Jilin Jlu
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hengli and Jilin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Jilin Jlu go up and down completely randomly.
Pair Corralation between Hengli Industrial and Jilin Jlu
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Jilin Jlu. In addition to that, Hengli Industrial is 1.13 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 0.05 per unit of volatility. If you would invest 669.00 in Jilin Jlu Communication on October 29, 2024 and sell it today you would earn a total of 200.00 from holding Jilin Jlu Communication or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Jilin Jlu Communication
Performance |
| Timeline |
| Hengli Industrial |
| Jilin Jlu Communication |
Hengli Industrial and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Jilin Jlu
The main advantage of trading using opposite Hengli Industrial and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.The idea behind Hengli Industrial Development and Jilin Jlu Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |