Correlation Between Jilin Jlu and Jahen Household
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By analyzing existing cross correlation between Jilin Jlu Communication and Jahen Household Products, you can compare the effects of market volatilities on Jilin Jlu and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jahen Household.
Diversification Opportunities for Jilin Jlu and Jahen Household
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Jahen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Jahen Household go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jahen Household
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.98 times more return on investment than Jahen Household. However, Jilin Jlu Communication is 1.02 times less risky than Jahen Household. It trades about 0.03 of its potential returns per unit of risk. Jahen Household Products 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. Jahen Household Products
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jahen Household Products |
Jilin Jlu and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jahen Household
The main advantage of trading using opposite Jilin Jlu and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household'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 |
| Jahen Household vs. Zijin Mining Group | Jahen Household vs. Baoshan Iron Steel | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Hoshine Silicon Ind |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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