Correlation Between Jilin Jlu and Shenwu Energy
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By analyzing existing cross correlation between Jilin Jlu Communication and Shenwu Energy Saving, you can compare the effects of market volatilities on Jilin Jlu and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shenwu Energy.
Diversification Opportunities for Jilin Jlu and Shenwu Energy
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Shenwu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shenwu Energy go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shenwu Energy
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.57 times more return on investment than Shenwu Energy. However, Jilin Jlu is 1.57 times more volatile than Shenwu Energy Saving. It trades about 0.19 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.19 per unit of risk. If you would invest 851.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 107.00 from holding Jilin Jlu Communication or generate 12.57% 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. Shenwu Energy Saving
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shenwu Energy Saving |
Jilin Jlu and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shenwu Energy
The main advantage of trading using opposite Jilin Jlu and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy'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 |
| Shenwu Energy vs. Shanghai Action Education | Shenwu Energy vs. Offcn Education Technology | Shenwu Energy vs. Hubeiyichang Transportation Group | Shenwu Energy vs. Shanghai Broadband 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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