Correlation Between Jilin Jlu and Masterwork Machinery
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By analyzing existing cross correlation between Jilin Jlu Communication and Masterwork Machinery, you can compare the effects of market volatilities on Jilin Jlu and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Masterwork Machinery.
Diversification Opportunities for Jilin Jlu and Masterwork Machinery
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Masterwork is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Jilin Jlu and Masterwork Machinery
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.0 times more return on investment than Masterwork Machinery. However, Jilin Jlu Communication is as risky as Masterwork Machinery. It trades about -0.07 of its potential returns per unit of risk. Masterwork Machinery is currently generating about -0.08 per unit of risk. If you would invest 958.00 in Jilin Jlu Communication on October 30, 2024 and sell it today you would lose (92.00) from holding Jilin Jlu Communication or give up 9.6% 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. Masterwork Machinery
Performance |
| Timeline |
| Jilin Jlu Communication |
| Masterwork Machinery |
Jilin Jlu and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Masterwork Machinery
The main advantage of trading using opposite Jilin Jlu and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery'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 |
| Masterwork Machinery vs. BTG Hotels Group | Masterwork Machinery vs. Nanjing Putian Telecommunications | Masterwork Machinery vs. Guangdong Qunxing Toys | Masterwork Machinery vs. Citic Guoan Wine |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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