Correlation Between Jilin Jlu and Hengli Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Jlu Communication and Hengli Industrial Development, you can compare the effects of market volatilities on Jilin Jlu and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Hengli Industrial.
Diversification Opportunities for Jilin Jlu and Hengli Industrial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Hengli is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Hengli Industrial go up and down completely randomly.
Pair Corralation between Jilin Jlu and Hengli Industrial
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.92 times more return on investment than Hengli Industrial. However, Jilin Jlu Communication is 1.09 times less risky than Hengli Industrial. It trades about 0.03 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Hengli Industrial Development
Performance |
| Timeline |
| Jilin Jlu Communication |
| Hengli Industrial |
Jilin Jlu and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Hengli Industrial
The main advantage of trading using opposite Jilin Jlu and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial'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 |
| Hengli Industrial vs. China Sports Industry | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Guangdong Shenglu Telecommunication |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |