Correlation Between Jilin Jlu and Qiming Information
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By analyzing existing cross correlation between Jilin Jlu Communication and Qiming Information Technology, you can compare the effects of market volatilities on Jilin Jlu and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Qiming Information.
Diversification Opportunities for Jilin Jlu and Qiming Information
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Qiming is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Qiming Information go up and down completely randomly.
Pair Corralation between Jilin Jlu and Qiming Information
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 2.47 times less return on investment than Qiming Information. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.29 times less risky than Qiming Information. It trades about 0.02 of its potential returns per unit of risk. Qiming Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Qiming Information Technology on October 16, 2024 and sell it today you would earn a total of 376.00 from holding Qiming Information Technology or generate 25.93% 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. Qiming Information Technology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Qiming Information |
Jilin Jlu and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Qiming Information
The main advantage of trading using opposite Jilin Jlu and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Jilin Jlu vs. Ziel Home Furnishing | Jilin Jlu vs. Anhui Deli Household | Jilin Jlu vs. Marssenger Kitchenware Co | Jilin Jlu vs. Shanghai Shuixing Home |
| Qiming Information vs. Bank of Communications | Qiming Information vs. China Satellite Communications | Qiming Information vs. Beijing Bewinner Communications | Qiming Information vs. Wintao Communications Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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