Correlation Between Jilin Jlu and Sinomach Automobile
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By analyzing existing cross correlation between Jilin Jlu Communication and Sinomach Automobile Co, you can compare the effects of market volatilities on Jilin Jlu and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Sinomach Automobile.
Diversification Opportunities for Jilin Jlu and Sinomach Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Sinomach is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Jilin Jlu and Sinomach Automobile
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.99 times more return on investment than Sinomach Automobile. However, Jilin Jlu Communication is 1.01 times less risky than Sinomach Automobile. It trades about 0.02 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of risk. If you would invest 826.00 in Jilin Jlu Communication on August 28, 2024 and sell it today you would earn a total of 90.00 from holding Jilin Jlu Communication or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Sinomach Automobile Co
Performance |
| Timeline |
| Jilin Jlu Communication |
| Sinomach Automobile |
Jilin Jlu and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Sinomach Automobile
The main advantage of trading using opposite Jilin Jlu and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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