Correlation Between Jilin Jlu and Shanghai Broadband
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By analyzing existing cross correlation between Jilin Jlu Communication and Shanghai Broadband Technology, you can compare the effects of market volatilities on Jilin Jlu and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shanghai Broadband.
Diversification Opportunities for Jilin Jlu and Shanghai Broadband
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shanghai Broadband
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Shanghai Broadband. In addition to that, Jilin Jlu is 1.06 times more volatile than Shanghai Broadband Technology. It trades about -0.21 of its total potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.16 per unit of volatility. If you would invest 361.00 in Shanghai Broadband Technology on October 17, 2024 and sell it today you would lose (44.00) from holding Shanghai Broadband Technology or give up 12.19% 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. Shanghai Broadband Technology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shanghai Broadband |
Jilin Jlu and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shanghai Broadband
The main advantage of trading using opposite Jilin Jlu and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Jilin Jlu vs. Shandong Polymer Biochemicals | Jilin Jlu vs. Yingde Greatchem Chemicals | Jilin Jlu vs. Xiamen Goldenhome Co | Jilin Jlu vs. Shenzhen Noposion Agrochemicals |
| Shanghai Broadband vs. Shanghai Action Education | Shanghai Broadband vs. Montage Technology Co | Shanghai Broadband vs. HUAQIN TECHNOLOGY LTD | Shanghai Broadband vs. Guangdong Qunxing Toys |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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