Correlation Between Longxing Chemical and Jilin Chemical
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By analyzing existing cross correlation between Longxing Chemical Stock and Jilin Chemical Fibre, you can compare the effects of market volatilities on Longxing Chemical and Jilin Chemical 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 Longxing Chemical with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Jilin Chemical.
Diversification Opportunities for Longxing Chemical and Jilin Chemical
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Longxing and Jilin is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Longxing Chemical 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 Longxing Chemical Stock are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Jilin Chemical go up and down completely randomly.
Pair Corralation between Longxing Chemical and Jilin Chemical
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.92 times more return on investment than Jilin Chemical. However, Longxing Chemical is 1.92 times more volatile than Jilin Chemical Fibre. It trades about 0.02 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.25 per unit of risk. If you would invest 568.00 in Longxing Chemical Stock on October 21, 2024 and sell it today you would lose (2.00) from holding Longxing Chemical Stock or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Longxing Chemical Stock |
| Jilin Chemical Fibre |
Longxing Chemical and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Jilin Chemical
The main advantage of trading using opposite Longxing Chemical and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Jilin Chemical 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 Chemical will offset losses from the drop in Jilin Chemical's long position.| Longxing Chemical vs. Tianshan Aluminum Group | Longxing Chemical vs. Sanxiang Advanced Materials | Longxing Chemical vs. Suzhou Xingye Material | Longxing Chemical vs. Kangxin New Materials |
| Jilin Chemical vs. Digiwin Software Co | Jilin Chemical vs. Wuhan Yangtze Communication | Jilin Chemical vs. Vontron Technology Co | Jilin Chemical vs. Tianshui Huatian Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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