Correlation Between Jilin Jlu and Haima Automobile
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By analyzing existing cross correlation between Jilin Jlu Communication and Haima Automobile Group, you can compare the effects of market volatilities on Jilin Jlu and Haima Automobile 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 Jilin Jlu with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Haima Automobile.
Diversification Opportunities for Jilin Jlu and Haima Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Haima is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jilin Jlu 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 Jilin Jlu Communication are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Haima Automobile go up and down completely randomly.
Pair Corralation between Jilin Jlu and Haima Automobile
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.89 times more return on investment than Haima Automobile. However, Jilin Jlu Communication is 1.13 times less risky than Haima Automobile. It trades about 0.03 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.01 per unit of risk. If you would invest 797.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 161.00 from holding Jilin Jlu Communication or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Haima Automobile Group
Performance |
| Timeline |
| Jilin Jlu Communication |
| Haima Automobile |
Jilin Jlu and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Haima Automobile
The main advantage of trading using opposite Jilin Jlu and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software Co |
| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang Publishing Media |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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