Correlation Between Jilin Jlu and China Eastern
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By analyzing existing cross correlation between Jilin Jlu Communication and China Eastern Airlines, you can compare the effects of market volatilities on Jilin Jlu and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and China Eastern.
Diversification Opportunities for Jilin Jlu and China Eastern
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and China is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and China Eastern go up and down completely randomly.
Pair Corralation between Jilin Jlu and China Eastern
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the China Eastern. In addition to that, Jilin Jlu is 1.76 times more volatile than China Eastern Airlines. It trades about -0.01 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.04 per unit of volatility. If you would invest 373.00 in China Eastern Airlines on October 25, 2024 and sell it today you would earn a total of 12.00 from holding China Eastern Airlines or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Jilin Jlu Communication vs. China Eastern Airlines
Performance |
| Timeline |
| Jilin Jlu Communication |
| China Eastern Airlines |
Jilin Jlu and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and China Eastern
The main advantage of trading using opposite Jilin Jlu and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
| China Eastern vs. Kweichow Moutai Co | China Eastern vs. Contemporary Amperex Technology | China Eastern vs. Beijing Roborock Technology | China Eastern vs. BYD Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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