Correlation Between Fujian Newland and Jilin Jlu
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By analyzing existing cross correlation between Fujian Newland Computer and Jilin Jlu Communication, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Jilin Jlu.
Diversification Opportunities for Fujian Newland and Jilin Jlu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Jilin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Jilin Jlu go up and down completely randomly.
Pair Corralation between Fujian Newland and Jilin Jlu
Assuming the 90 days trading horizon Fujian Newland Computer is expected to under-perform the Jilin Jlu. In addition to that, Fujian Newland is 1.39 times more volatile than Jilin Jlu Communication. It trades about 0.0 of its total potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.13 per unit of volatility. If you would invest 939.00 in Jilin Jlu Communication on September 15, 2024 and sell it today you would earn a total of 60.00 from holding Jilin Jlu Communication or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Jilin Jlu Communication
Performance |
| Timeline |
| Fujian Newland Computer |
| Jilin Jlu Communication |
Fujian Newland and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Jilin Jlu
The main advantage of trading using opposite Fujian Newland and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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