Correlation Between Jilin Jlu and Miracll Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Jlu Communication and Miracll Chemicals Co, you can compare the effects of market volatilities on Jilin Jlu and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Miracll Chemicals.
Diversification Opportunities for Jilin Jlu and Miracll Chemicals
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Miracll is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Jilin Jlu and Miracll Chemicals
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.93 times more return on investment than Miracll Chemicals. However, Jilin Jlu Communication is 1.07 times less risky than Miracll Chemicals. It trades about 0.24 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.17 per unit of risk. If you would invest 794.00 in Jilin Jlu Communication on November 7, 2024 and sell it today you would earn a total of 72.00 from holding Jilin Jlu Communication or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Miracll Chemicals Co
Performance |
| Timeline |
| Jilin Jlu Communication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Miracll Chemicals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jilin Jlu and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Miracll Chemicals
The main advantage of trading using opposite Jilin Jlu and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.The idea behind Jilin Jlu Communication and Miracll Chemicals Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |