Correlation Between Jilin Jlu and New Hope
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By analyzing existing cross correlation between Jilin Jlu Communication and New Hope Dairy, you can compare the effects of market volatilities on Jilin Jlu and New Hope 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 New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and New Hope.
Diversification Opportunities for Jilin Jlu and New Hope
Very good diversification
The 3 months correlation between Jilin and New is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and New Hope go up and down completely randomly.
Pair Corralation between Jilin Jlu and New Hope
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.27 times more return on investment than New Hope. However, Jilin Jlu is 1.27 times more volatile than New Hope Dairy. It trades about 0.07 of its potential returns per unit of risk. New Hope Dairy is currently generating about 0.09 per unit of risk. If you would invest 559.00 in Jilin Jlu Communication on November 3, 2024 and sell it today you would earn a total of 307.00 from holding Jilin Jlu Communication or generate 54.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. New Hope Dairy
Performance |
| Timeline |
| Jilin Jlu Communication |
| New Hope Dairy |
Jilin Jlu and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and New Hope
The main advantage of trading using opposite Jilin Jlu and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| Jilin Jlu vs. RoadMain T Co | Jilin Jlu vs. Heilongjiang Transport Development | Jilin Jlu vs. Luyin Investment Group | Jilin Jlu vs. Sichuan Fulin Transportation |
| New Hope vs. Ping An Insurance | New Hope vs. Chengdu Spaceon Electronics | New Hope vs. Omnijoi Media Corp | New Hope vs. Thinkingdom Media Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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