Correlation Between Jilin Jlu and Unigroup Guoxin
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By analyzing existing cross correlation between Jilin Jlu Communication and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Jilin Jlu and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Unigroup Guoxin.
Diversification Opportunities for Jilin Jlu and Unigroup Guoxin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Unigroup is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Jilin Jlu and Unigroup Guoxin
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.12 times more return on investment than Unigroup Guoxin. However, Jilin Jlu is 1.12 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.03 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.04 per unit of risk. If you would invest 740.00 in Jilin Jlu Communication on September 12, 2024 and sell it today you would earn a total of 235.00 from holding Jilin Jlu Communication or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Jilin Jlu Communication |
| Unigroup Guoxin Micr |
Jilin Jlu and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Unigroup Guoxin
The main advantage of trading using opposite Jilin Jlu and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. Bank of China | Jilin Jlu vs. PetroChina Co Ltd |
| Unigroup Guoxin vs. Gansu Jiu Steel | Unigroup Guoxin vs. Shandong Mining Machinery | Unigroup Guoxin vs. Aba Chemicals Corp | Unigroup Guoxin vs. BlueFocus Communication Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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