Correlation Between Guangdong Jingyi and Jilin Jlu
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Jilin Jlu Communication, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Jilin Jlu.
Diversification Opportunities for Guangdong Jingyi and Jilin Jlu
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jilin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Jilin Jlu go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Jilin Jlu
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.96 times more return on investment than Jilin Jlu. However, Guangdong Jingyi Metal is 1.04 times less risky than Jilin Jlu. It trades about -0.01 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.1 per unit of risk. If you would invest 750.00 in Guangdong Jingyi Metal on November 3, 2024 and sell it today you would lose (21.00) from holding Guangdong Jingyi Metal or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Jilin Jlu Communication
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Jilin Jlu Communication |
Guangdong Jingyi and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Jilin Jlu
The main advantage of trading using opposite Guangdong Jingyi and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Allmed Medical Products | Guangdong Jingyi vs. Hengkang Medical Group | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Chengtun Mining Group |
| Jilin Jlu vs. RoadMain T Co | Jilin Jlu vs. Heilongjiang Transport Development | Jilin Jlu vs. Luyin Investment Group | Jilin Jlu vs. Sichuan Fulin Transportation |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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