Correlation Between Jilin Jlu and Shandong Hongchuang
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By analyzing existing cross correlation between Jilin Jlu Communication and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Jilin Jlu and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shandong Hongchuang.
Diversification Opportunities for Jilin Jlu and Shandong Hongchuang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Shandong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shandong Hongchuang
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.6 times less return on investment than Shandong Hongchuang. In addition to that, Jilin Jlu is 1.37 times more volatile than Shandong Hongchuang Aluminum. It trades about 0.03 of its total potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.06 per unit of volatility. If you would invest 432.00 in Shandong Hongchuang Aluminum on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Shandong Hongchuang Aluminum or generate 69.44% 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. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shandong Hongchuang |
Jilin Jlu and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shandong Hongchuang
The main advantage of trading using opposite Jilin Jlu and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software Co |
| Shandong Hongchuang vs. Zijin Mining Group | Shandong Hongchuang vs. Baoshan Iron Steel | Shandong Hongchuang vs. Rongsheng Petrochemical Co | Shandong Hongchuang vs. Hoshine Silicon Ind |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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