Correlation Between Shandong Polymer and Jilin Jlu
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Jilin Jlu Communication, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Jilin Jlu.
Diversification Opportunities for Shandong Polymer and Jilin Jlu
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Jilin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals 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 Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Jilin Jlu go up and down completely randomly.
Pair Corralation between Shandong Polymer and Jilin Jlu
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.82 times more return on investment than Jilin Jlu. However, Shandong Polymer Biochemicals is 1.22 times less risky than Jilin Jlu. It trades about -0.22 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.21 per unit of risk. If you would invest 487.00 in Shandong Polymer Biochemicals on October 17, 2024 and sell it today you would lose (67.00) from holding Shandong Polymer Biochemicals or give up 13.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Jilin Jlu Communication
Performance |
| Timeline |
| Shandong Polymer Bio |
| Jilin Jlu Communication |
Shandong Polymer and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Jilin Jlu
The main advantage of trading using opposite Shandong Polymer and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Tianshui Huatian Technology | Shandong Polymer vs. Harbin Hatou Investment | Shandong Polymer vs. Hubei Geoway Investment | Shandong Polymer vs. CGN Nuclear Technology |
| Jilin Jlu vs. Shandong Polymer Biochemicals | Jilin Jlu vs. Yingde Greatchem Chemicals | Jilin Jlu vs. Xiamen Goldenhome Co | Jilin Jlu vs. Shenzhen Noposion Agrochemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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