Correlation Between Guangdong Shenglu and Jilin Jlu
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jilin Jlu Communication, you can compare the effects of market volatilities on Guangdong Shenglu 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 Shenglu with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jilin Jlu.
Diversification Opportunities for Guangdong Shenglu and Jilin Jlu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jilin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Shenglu 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 Shenglu Telecommunication 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 Shenglu i.e., Guangdong Shenglu and Jilin Jlu go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jilin Jlu
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.23 times less risky than Jilin Jlu. The stock trades about 0.0 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 934.00 in Jilin Jlu Communication on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Jilin Jlu Communication or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Jilin Jlu Communication
Performance |
| Timeline |
| Guangdong Shenglu |
| Jilin Jlu Communication |
Guangdong Shenglu and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jilin Jlu
The main advantage of trading using opposite Guangdong Shenglu and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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 Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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