Correlation Between 159005 and Jilin Jlu
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By analyzing existing cross correlation between 159005 and Jilin Jlu Communication, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Jilin Jlu.
Diversification Opportunities for 159005 and Jilin Jlu
Very poor diversification
The 3 months correlation between 159005 and Jilin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Jilin Jlu go up and down completely randomly.
Pair Corralation between 159005 and Jilin Jlu
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than Jilin Jlu. However, 159005 is 128.48 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 0.0 per unit of risk. If you would invest 9,987 in 159005 on August 27, 2024 and sell it today you would earn a total of 13.00 from holding 159005 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Jilin Jlu Communication
Performance |
| Timeline |
| 159005 |
| Jilin Jlu Communication |
159005 and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Jilin Jlu
The main advantage of trading using opposite 159005 and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.| 159005 vs. Shenzhen MTC Co | 159005 vs. Ming Yang Smart | 159005 vs. Changzhou Almaden Co | 159005 vs. Loctek Ergonomic Technology |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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