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
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Jilin is 0.88. 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 is expected to generate 1.68 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.1 times less risky than Jilin Jlu. It trades about 0.02 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 161.00 from holding Jilin Jlu Communication or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| 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. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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