Correlation Between Jilin Jlu and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Jlu Communication and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jilin Jlu and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Guangdong Jingyi.
Diversification Opportunities for Jilin Jlu and Guangdong Jingyi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jilin Jlu and Guangdong Jingyi
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.95 times more return on investment than Guangdong Jingyi. However, Jilin Jlu is 1.95 times more volatile than Guangdong Jingyi Metal. It trades about 0.19 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.09 per unit of risk. If you would invest 851.00 in Jilin Jlu Communication on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Jilin Jlu Communication or generate 12.93% 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. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jilin Jlu Communication |
| Guangdong Jingyi Metal |
Jilin Jlu and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Guangdong Jingyi
The main advantage of trading using opposite Jilin Jlu and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec Co |
| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |