Correlation Between Beijing New and Jilin Jlu
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By analyzing existing cross correlation between Beijing New Building and Jilin Jlu Communication, you can compare the effects of market volatilities on Beijing New 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 Beijing New with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing New and Jilin Jlu.
Diversification Opportunities for Beijing New and Jilin Jlu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jilin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing New Building 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 Beijing New 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 Beijing New Building 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 Beijing New i.e., Beijing New and Jilin Jlu go up and down completely randomly.
Pair Corralation between Beijing New and Jilin Jlu
Assuming the 90 days trading horizon Beijing New Building is expected to generate 0.67 times more return on investment than Jilin Jlu. However, Beijing New Building is 1.5 times less risky than Jilin Jlu. It trades about 0.03 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.02 per unit of risk. If you would invest 2,450 in Beijing New Building on September 2, 2024 and sell it today you would earn a total of 402.00 from holding Beijing New Building or generate 16.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing New Building vs. Jilin Jlu Communication
Performance |
| Timeline |
| Beijing New Building |
| Jilin Jlu Communication |
Beijing New and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing New and Jilin Jlu
The main advantage of trading using opposite Beijing New and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing New 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.| Beijing New vs. Fujian Boss Software | Beijing New vs. Dareway Software Co | Beijing New vs. Chahua Modern Housewares | Beijing New vs. Holitech Technology Co |
| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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