Correlation Between Jilin Jlu and Jiangsu Yanghe
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Jilin Jlu and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiangsu Yanghe.
Diversification Opportunities for Jilin Jlu and Jiangsu Yanghe
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiangsu Yanghe
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.53 times more return on investment than Jiangsu Yanghe. However, Jilin Jlu is 1.53 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.0 per unit of risk. If you would invest 670.00 in Jilin Jlu Communication on September 2, 2024 and sell it today you would earn a total of 288.00 from holding Jilin Jlu Communication or generate 42.99% 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. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiangsu Yanghe Brewery |
Jilin Jlu and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiangsu Yanghe
The main advantage of trading using opposite Jilin Jlu and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
| Jiangsu Yanghe vs. China Petroleum Chemical | Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China State Construction | Jiangsu Yanghe vs. China Railway 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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