Correlation Between Jilin Jlu and Guizhou Chanhen
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By analyzing existing cross correlation between Jilin Jlu Communication and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Jilin Jlu and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Guizhou Chanhen.
Diversification Opportunities for Jilin Jlu and Guizhou Chanhen
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jilin and Guizhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Jilin Jlu and Guizhou Chanhen
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Guizhou Chanhen. In addition to that, Jilin Jlu is 1.34 times more volatile than Guizhou Chanhen Chemical. It trades about -0.02 of its total potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.02 per unit of volatility. If you would invest 2,257 in Guizhou Chanhen Chemical on October 26, 2024 and sell it today you would lose (97.00) from holding Guizhou Chanhen Chemical or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Jilin Jlu Communication |
| Guizhou Chanhen Chemical |
Jilin Jlu and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Guizhou Chanhen
The main advantage of trading using opposite Jilin Jlu and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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