Correlation Between Jilin Jlu and Xinjiang Communications
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By analyzing existing cross correlation between Jilin Jlu Communication and Xinjiang Communications Construction, you can compare the effects of market volatilities on Jilin Jlu and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Xinjiang Communications.
Diversification Opportunities for Jilin Jlu and Xinjiang Communications
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Xinjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Jilin Jlu and Xinjiang Communications
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.02 times more return on investment than Xinjiang Communications. However, Jilin Jlu is 1.02 times more volatile than Xinjiang Communications Construction. It trades about 0.01 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.0 per unit of risk. If you would invest 879.00 in Jilin Jlu Communication on November 2, 2024 and sell it today you would lose (13.00) from holding Jilin Jlu Communication or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Jilin Jlu Communication |
| Xinjiang Communications |
Jilin Jlu and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Xinjiang Communications
The main advantage of trading using opposite Jilin Jlu and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Jilin Jlu vs. Tonghua Grape Wine | Jilin Jlu vs. Zhongshan Public Utilities | Jilin Jlu vs. Southern PublishingMedia Co | Jilin Jlu vs. Northern United Publishing |
| Xinjiang Communications vs. AVIC Fund Management | Xinjiang Communications vs. Chenzhou Jingui Silver | Xinjiang Communications vs. Air China Ltd | Xinjiang Communications vs. Innovative Medical Management |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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