Correlation Between Jilin Jlu and Nanjing Xinjiekou
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By analyzing existing cross correlation between Jilin Jlu Communication and Nanjing Xinjiekou Department, you can compare the effects of market volatilities on Jilin Jlu and Nanjing Xinjiekou 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 Nanjing Xinjiekou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Nanjing Xinjiekou.
Diversification Opportunities for Jilin Jlu and Nanjing Xinjiekou
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Nanjing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Nanjing Xinjiekou Department in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Xinjiekou 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 Nanjing Xinjiekou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Xinjiekou has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Nanjing Xinjiekou go up and down completely randomly.
Pair Corralation between Jilin Jlu and Nanjing Xinjiekou
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.8 times less return on investment than Nanjing Xinjiekou. In addition to that, Jilin Jlu is 1.01 times more volatile than Nanjing Xinjiekou Department. It trades about 0.1 of its total potential returns per unit of risk. Nanjing Xinjiekou Department is currently generating about 0.19 per unit of volatility. If you would invest 658.00 in Nanjing Xinjiekou Department on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Nanjing Xinjiekou Department or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Nanjing Xinjiekou Department
Performance |
| Timeline |
| Jilin Jlu Communication |
| Nanjing Xinjiekou |
Jilin Jlu and Nanjing Xinjiekou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Nanjing Xinjiekou
The main advantage of trading using opposite Jilin Jlu and Nanjing Xinjiekou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Nanjing Xinjiekou 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 Nanjing Xinjiekou will offset losses from the drop in Nanjing Xinjiekou's long position.| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
| Nanjing Xinjiekou vs. Lonkey Industrial Co | Nanjing Xinjiekou vs. China Minmetals Rare | Nanjing Xinjiekou vs. Jinhe Biotechnology Co | Nanjing Xinjiekou vs. Kingclean Electric Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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