Correlation Between Jilin Jlu and Fujian Newland
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By analyzing existing cross correlation between Jilin Jlu Communication and Fujian Newland Computer, you can compare the effects of market volatilities on Jilin Jlu and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Fujian Newland.
Diversification Opportunities for Jilin Jlu and Fujian Newland
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Fujian is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Fujian Newland go up and down completely randomly.
Pair Corralation between Jilin Jlu and Fujian Newland
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 2.26 times less return on investment than Fujian Newland. In addition to that, Jilin Jlu is 1.07 times more volatile than Fujian Newland Computer. It trades about 0.07 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.16 per unit of volatility. If you would invest 1,228 in Fujian Newland Computer on November 2, 2024 and sell it today you would earn a total of 762.00 from holding Fujian Newland Computer or generate 62.05% 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. Fujian Newland Computer
Performance |
| Timeline |
| Jilin Jlu Communication |
| Fujian Newland Computer |
Jilin Jlu and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Fujian Newland
The main advantage of trading using opposite Jilin Jlu and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Jilin Jlu vs. GigaDevice SemiconductorBeiji | Jilin Jlu vs. Thinkon Semiconductor Jinzhou | Jilin Jlu vs. GRINM Semiconductor Materials | Jilin Jlu vs. Shanghai V Test Semiconductor |
| Fujian Newland vs. Zhangjiagang Elegant Home | Fujian Newland vs. AUPU Home Style | Fujian Newland vs. Nanxing Furniture Machinery | Fujian Newland vs. Fiberhome Telecommunication Technologies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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