Correlation Between Jilin Jlu and Jiujiang Shanshui
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Jilin Jlu and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiujiang Shanshui.
Diversification Opportunities for Jilin Jlu and Jiujiang Shanshui
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Jiujiang is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiujiang Shanshui
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.36 times more return on investment than Jiujiang Shanshui. However, Jilin Jlu is 1.36 times more volatile than Jiujiang Shanshui Technology. It trades about 0.01 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.02 per unit of risk. If you would invest 995.00 in Jilin Jlu Communication on August 27, 2024 and sell it today you would lose (95.00) from holding Jilin Jlu Communication or give up 9.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiujiang Shanshui |
Jilin Jlu and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiujiang Shanshui
The main advantage of trading using opposite Jilin Jlu and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Jiujiang Shanshui vs. Qilu Bank Co | Jiujiang Shanshui vs. Telling Telecommunication Holding | Jiujiang Shanshui vs. HeNan Splendor Science | Jiujiang Shanshui vs. Jilin Jlu Communication |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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