Correlation Between Jilin Jlu and Shanghai Pudong
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By analyzing existing cross correlation between Jilin Jlu Communication and Shanghai Pudong Development, you can compare the effects of market volatilities on Jilin Jlu and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shanghai Pudong.
Diversification Opportunities for Jilin Jlu and Shanghai Pudong
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shanghai Pudong
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 2.63 times more return on investment than Shanghai Pudong. However, Jilin Jlu is 2.63 times more volatile than Shanghai Pudong Development. It trades about 0.03 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.06 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Shanghai Pudong Development
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shanghai Pudong Deve |
Jilin Jlu and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shanghai Pudong
The main advantage of trading using opposite Jilin Jlu and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong'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 |
| Shanghai Pudong vs. Jilin Jlu Communication | Shanghai Pudong vs. Zhongtong Guomai Communication | Shanghai Pudong vs. Wintao Communications Co | Shanghai Pudong vs. Muyuan Foodstuff Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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