Correlation Between Jilin Jlu and Chengdu Kanghua
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By analyzing existing cross correlation between Jilin Jlu Communication and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Jilin Jlu and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Chengdu Kanghua.
Diversification Opportunities for Jilin Jlu and Chengdu Kanghua
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Chengdu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Jilin Jlu and Chengdu Kanghua
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.04 times more return on investment than Chengdu Kanghua. However, Jilin Jlu is 1.04 times more volatile than Chengdu Kanghua Biological. It trades about 0.01 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.0 per unit of risk. If you would invest 941.00 in Jilin Jlu Communication on August 28, 2024 and sell it today you would lose (25.00) from holding Jilin Jlu Communication or give up 2.66% 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. Chengdu Kanghua Biological
Performance |
| Timeline |
| Jilin Jlu Communication |
| Chengdu Kanghua Biol |
Jilin Jlu and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Chengdu Kanghua
The main advantage of trading using opposite Jilin Jlu and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Chengdu Kanghua vs. Industrial and Commercial | Chengdu Kanghua vs. China Construction Bank | Chengdu Kanghua vs. Agricultural Bank of | Chengdu Kanghua 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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