Correlation Between Jilin Jlu and Maoming Petro
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By analyzing existing cross correlation between Jilin Jlu Communication and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Jilin Jlu and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Maoming Petro.
Diversification Opportunities for Jilin Jlu and Maoming Petro
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Maoming is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Maoming Petro go up and down completely randomly.
Pair Corralation between Jilin Jlu and Maoming Petro
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.5 times more return on investment than Maoming Petro. However, Jilin Jlu is 1.5 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.07 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.06 per unit of risk. If you would invest 681.00 in Jilin Jlu Communication on October 26, 2024 and sell it today you would earn a total of 172.00 from holding Jilin Jlu Communication or generate 25.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Jilin Jlu Communication |
| Maoming Petro Chemical |
Jilin Jlu and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Maoming Petro
The main advantage of trading using opposite Jilin Jlu and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
| Maoming Petro vs. Fibocom Wireless | Maoming Petro vs. Jilin Jlu Communication | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. China Mobile Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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