Correlation Between Jilin Jlu and Jiangsu Jinling
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Jilin Jlu and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiangsu Jinling.
Diversification Opportunities for Jilin Jlu and Jiangsu Jinling
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Jiangsu is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiangsu Jinling
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.02 times more return on investment than Jiangsu Jinling. However, Jilin Jlu is 1.02 times more volatile than Jiangsu Jinling Sports. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 797.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 161.00 from holding Jilin Jlu Communication or generate 20.2% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiangsu Jinling Sports |
Jilin Jlu and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiangsu Jinling
The main advantage of trading using opposite Jilin Jlu and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software Co |
| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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