Correlation Between Songz Automobile and Jilin Chemical
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By analyzing existing cross correlation between Songz Automobile Air and Jilin Chemical Fibre, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Jilin Chemical.
Diversification Opportunities for Songz Automobile and Jilin Chemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Jilin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and Jilin Chemical go up and down completely randomly.
Pair Corralation between Songz Automobile and Jilin Chemical
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.87 times more return on investment than Jilin Chemical. However, Songz Automobile Air is 1.15 times less risky than Jilin Chemical. It trades about 0.0 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.01 per unit of risk. If you would invest 782.00 in Songz Automobile Air on October 18, 2024 and sell it today you would lose (129.00) from holding Songz Automobile Air or give up 16.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Songz Automobile Air |
| Jilin Chemical Fibre |
Songz Automobile and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Jilin Chemical
The main advantage of trading using opposite Songz Automobile and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. Shenzhen Bioeasy Biotechnology | Songz Automobile vs. Bloomage Biotechnology Corp | Songz Automobile vs. Olympic Circuit Technology | Songz Automobile vs. Sichuan Hebang Biotechnology |
| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
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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