Correlation Between Jilin Jlu and Sunwave Communications
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By analyzing existing cross correlation between Jilin Jlu Communication and Sunwave Communications Co, you can compare the effects of market volatilities on Jilin Jlu and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Sunwave Communications.
Diversification Opportunities for Jilin Jlu and Sunwave Communications
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Sunwave is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Sunwave Communications go up and down completely randomly.
Pair Corralation between Jilin Jlu and Sunwave Communications
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.44 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.05 times less risky than Sunwave Communications. It trades about 0.02 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Sunwave Communications Co on August 24, 2024 and sell it today you would earn a total of 88.00 from holding Sunwave Communications Co or generate 17.39% 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. Sunwave Communications Co
Performance |
| Timeline |
| Jilin Jlu Communication |
| Sunwave Communications |
Jilin Jlu and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Sunwave Communications
The main advantage of trading using opposite Jilin Jlu and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Jilin Jlu vs. Chengdu Kanghua Biological | Jilin Jlu vs. Beijing Wantai Biological | Jilin Jlu vs. Suzhou Novoprotein Scientific | Jilin Jlu vs. Aluminum Corp of |
| Sunwave Communications vs. Ming Yang Smart | Sunwave Communications vs. 159005 | Sunwave Communications vs. Loctek Ergonomic Technology | Sunwave Communications vs. Xiamen East Asia |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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