Correlation Between Jilin Jlu and Runjian Communication
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By analyzing existing cross correlation between Jilin Jlu Communication and Runjian Communication Co, you can compare the effects of market volatilities on Jilin Jlu and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Runjian Communication.
Diversification Opportunities for Jilin Jlu and Runjian Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Runjian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Runjian Communication go up and down completely randomly.
Pair Corralation between Jilin Jlu and Runjian Communication
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.37 times more return on investment than Runjian Communication. However, Jilin Jlu is 1.37 times more volatile than Runjian Communication Co. It trades about 0.13 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.02 per unit of risk. If you would invest 934.00 in Jilin Jlu Communication on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Jilin Jlu Communication or generate 7.71% 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. Runjian Communication Co
Performance |
| Timeline |
| Jilin Jlu Communication |
| Runjian Communication |
Jilin Jlu and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Runjian Communication
The main advantage of trading using opposite Jilin Jlu and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Runjian Communication vs. Industrial and Commercial | Runjian Communication vs. China Construction Bank | Runjian Communication vs. Agricultural Bank of | Runjian Communication vs. Bank of China |
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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