Correlation Between Jilin Jlu and Kuang Chi
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By analyzing existing cross correlation between Jilin Jlu Communication and Kuang Chi Technologies, you can compare the effects of market volatilities on Jilin Jlu and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Kuang Chi.
Diversification Opportunities for Jilin Jlu and Kuang Chi
Very poor diversification
The 3 months correlation between Jilin and Kuang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Kuang Chi go up and down completely randomly.
Pair Corralation between Jilin Jlu and Kuang Chi
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.65 times more return on investment than Kuang Chi. However, Jilin Jlu Communication is 1.55 times less risky than Kuang Chi. It trades about 0.13 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.13 per unit of risk. If you would invest 939.00 in Jilin Jlu Communication on September 15, 2024 and sell it today you would earn a total of 60.00 from holding Jilin Jlu Communication or generate 6.39% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Jilin Jlu Communication |
| Kuang Chi Technologies |
Jilin Jlu and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Kuang Chi
The main advantage of trading using opposite Jilin Jlu and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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