Correlation Between Jilin Jlu and Zhejiang Yayi
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By analyzing existing cross correlation between Jilin Jlu Communication and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Jilin Jlu and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Zhejiang Yayi.
Diversification Opportunities for Jilin Jlu and Zhejiang Yayi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Zhejiang is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Jilin Jlu and Zhejiang Yayi
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.4 times more return on investment than Zhejiang Yayi. However, Jilin Jlu is 1.4 times more volatile than Zhejiang Yayi Metal. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.14 per unit of risk. If you would invest 895.00 in Jilin Jlu Communication on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Jilin Jlu Communication or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Jilin Jlu Communication |
| Zhejiang Yayi Metal |
Jilin Jlu and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Zhejiang Yayi
The main advantage of trading using opposite Jilin Jlu and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
| Zhejiang Yayi vs. Fujian Nanwang Environment | Zhejiang Yayi vs. Panda Financial Holding | Zhejiang Yayi vs. Elite Color Environmental | Zhejiang Yayi vs. Jiangsu Financial Leasing |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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