Correlation Between Jilin Jlu and Tianjin Hi
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By analyzing existing cross correlation between Jilin Jlu Communication and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Jilin Jlu and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Tianjin Hi.
Diversification Opportunities for Jilin Jlu and Tianjin Hi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Tianjin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Tianjin Hi go up and down completely randomly.
Pair Corralation between Jilin Jlu and Tianjin Hi
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Tianjin Hi. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Jlu Communication is 1.13 times less risky than Tianjin Hi. The stock trades about -0.02 of its potential returns per unit of risk. The Tianjin Hi Tech Development is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Tianjin Hi Tech Development on October 26, 2024 and sell it today you would lose (20.00) from holding Tianjin Hi Tech Development or give up 6.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Jilin Jlu Communication |
| Tianjin Hi Tech |
Jilin Jlu and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Tianjin Hi
The main advantage of trading using opposite Jilin Jlu and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
| Tianjin Hi vs. Beijing Mainstreets Investment | Tianjin Hi vs. Shandong Polymer Biochemicals | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Shenzhen Noposion Agrochemicals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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