Correlation Between Xinjiang Communications and Jilin Jlu
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By analyzing existing cross correlation between Xinjiang Communications Construction and Jilin Jlu Communication, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Jilin Jlu.
Diversification Opportunities for Xinjiang Communications and Jilin Jlu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Jilin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr 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 Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Jilin Jlu go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Jilin Jlu
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.81 times more return on investment than Jilin Jlu. However, Xinjiang Communications Construction is 1.24 times less risky than Jilin Jlu. It trades about 0.2 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.1 per unit of risk. If you would invest 1,138 in Xinjiang Communications Construction on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Xinjiang Communications Construction or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Jilin Jlu Communication
Performance |
| Timeline |
| Xinjiang Communications |
| Jilin Jlu Communication |
Xinjiang Communications and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Jilin Jlu
The main advantage of trading using opposite Xinjiang Communications and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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