Correlation Between Jilin Jlu and Xinjiang Tianrun
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By analyzing existing cross correlation between Jilin Jlu Communication and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Jilin Jlu and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Xinjiang Tianrun.
Diversification Opportunities for Jilin Jlu and Xinjiang Tianrun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Xinjiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Jilin Jlu and Xinjiang Tianrun
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Xinjiang Tianrun. In addition to that, Jilin Jlu is 1.29 times more volatile than Xinjiang Tianrun Dairy. It trades about -0.32 of its total potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.41 per unit of volatility. If you would invest 1,049 in Xinjiang Tianrun Dairy on October 15, 2024 and sell it today you would lose (209.00) from holding Xinjiang Tianrun Dairy or give up 19.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Jlu Communication vs. Xinjiang Tianrun Dairy
Performance |
Timeline |
Jilin Jlu Communication |
Xinjiang Tianrun Dairy |
Jilin Jlu and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and Xinjiang Tianrun
The main advantage of trading using opposite Jilin Jlu and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.Jilin Jlu vs. Hengli Industrial Development | Jilin Jlu vs. Qingdao Choho Industrial | Jilin Jlu vs. Montage Technology Co | Jilin Jlu vs. Western Metal Materials |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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