Correlation Between Jilin Jlu and China Petroleum
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By analyzing existing cross correlation between Jilin Jlu Communication and China Petroleum Chemical, you can compare the effects of market volatilities on Jilin Jlu and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and China Petroleum.
Diversification Opportunities for Jilin Jlu and China Petroleum
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jilin and China is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and China Petroleum go up and down completely randomly.
Pair Corralation between Jilin Jlu and China Petroleum
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.99 times more return on investment than China Petroleum. However, Jilin Jlu is 1.99 times more volatile than China Petroleum Chemical. It trades about 0.1 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.03 per unit of risk. If you would invest 675.00 in Jilin Jlu Communication on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Jilin Jlu Communication or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. China Petroleum Chemical
Performance |
| Timeline |
| Jilin Jlu Communication |
| China Petroleum Chemical |
Jilin Jlu and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and China Petroleum
The main advantage of trading using opposite Jilin Jlu and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. Bank of China | Jilin Jlu vs. PetroChina Co Ltd |
| China Petroleum vs. Western Superconducting Tech | China Petroleum vs. Holitech Technology Co | China Petroleum vs. Ping An Insurance | China Petroleum vs. Chengdu Xinzhu RoadBridge |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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