Correlation Between Shenzhen MTC and Jilin Jlu
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By analyzing existing cross correlation between Shenzhen MTC Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Shenzhen MTC 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 MTC with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and Jilin Jlu.
Diversification Opportunities for Shenzhen MTC and Jilin Jlu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jilin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co 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 MTC 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 MTC Co 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 MTC i.e., Shenzhen MTC and Jilin Jlu go up and down completely randomly.
Pair Corralation between Shenzhen MTC and Jilin Jlu
Assuming the 90 days trading horizon Shenzhen MTC is expected to generate 3.81 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, Shenzhen MTC Co is 1.39 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 0.02 of returns per unit of risk over similar time horizon. If you would invest 958.00 in Jilin Jlu Communication on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Jilin Jlu Communication or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Shenzhen MTC |
| Jilin Jlu Communication |
Shenzhen MTC and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and Jilin Jlu
The main advantage of trading using opposite Shenzhen MTC and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC 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 MTC vs. Chongqing Changan Automobile | Shenzhen MTC vs. CIMC Vehicles Co | Shenzhen MTC vs. Allied Machinery Co | Shenzhen MTC vs. Gifore Agricultural Machinery |
| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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