Correlation Between Shenzhen Noposion and Jilin Jlu
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Jilin Jlu Communication, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Jilin Jlu.
Diversification Opportunities for Shenzhen Noposion and Jilin Jlu
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Jilin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Jilin Jlu go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Jilin Jlu
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.83 times more return on investment than Jilin Jlu. However, Shenzhen Noposion Agrochemicals is 1.21 times less risky than Jilin Jlu. It trades about 0.04 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.01 per unit of risk. If you would invest 669.00 in Shenzhen Noposion Agrochemicals on November 2, 2024 and sell it today you would earn a total of 318.00 from holding Shenzhen Noposion Agrochemicals or generate 47.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Jilin Jlu Communication
Performance |
| Timeline |
| Shenzhen Noposion |
| Jilin Jlu Communication |
Shenzhen Noposion and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Jilin Jlu
The main advantage of trading using opposite Shenzhen Noposion and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| Jilin Jlu vs. Tonghua Grape Wine | Jilin Jlu vs. Zhongshan Public Utilities | Jilin Jlu vs. Southern PublishingMedia Co | Jilin Jlu vs. Northern United Publishing |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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