Correlation Between Jilin Jlu and Beijing Bewinner
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By analyzing existing cross correlation between Jilin Jlu Communication and Beijing Bewinner Communications, you can compare the effects of market volatilities on Jilin Jlu and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Beijing Bewinner.
Diversification Opportunities for Jilin Jlu and Beijing Bewinner
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Beijing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Jilin Jlu and Beijing Bewinner
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.99 times more return on investment than Beijing Bewinner. However, Jilin Jlu Communication is 1.01 times less risky than Beijing Bewinner. It trades about 0.03 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.02 per unit of risk. If you would invest 806.00 in Jilin Jlu Communication on September 2, 2024 and sell it today you would earn a total of 152.00 from holding Jilin Jlu Communication or generate 18.86% 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. Beijing Bewinner Communication
Performance |
| Timeline |
| Jilin Jlu Communication |
| Beijing Bewinner Com |
Jilin Jlu and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Beijing Bewinner
The main advantage of trading using opposite Jilin Jlu and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
| Beijing Bewinner vs. New China Life | Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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