Correlation Between Zhejiang JIULI and Jilin Jlu
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Jilin Jlu Communication, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Jilin Jlu.
Diversification Opportunities for Zhejiang JIULI and Jilin Jlu
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Jilin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech 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 Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Jilin Jlu go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Jilin Jlu
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.49 times more return on investment than Jilin Jlu. However, Zhejiang JIULI Hi tech is 2.03 times less risky than Jilin Jlu. It trades about 0.07 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 2,296 in Zhejiang JIULI Hi tech on October 25, 2024 and sell it today you would earn a total of 142.00 from holding Zhejiang JIULI Hi tech or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Jilin Jlu Communication
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Jilin Jlu Communication |
Zhejiang JIULI and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Jilin Jlu
The main advantage of trading using opposite Zhejiang JIULI and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Zotye Automobile Co | Zhejiang JIULI vs. Hunan Mendale Hometextile | Zhejiang JIULI vs. Xiamen Goldenhome Co | Zhejiang JIULI vs. Runjian Communication Co |
| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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