Correlation Between Jilin Jlu and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Jilin Jlu Communication and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Jilin Jlu and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Zhangjiagang Freetrade.
Diversification Opportunities for Jilin Jlu and Zhangjiagang Freetrade
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Zhangjiagang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Jilin Jlu and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.58 times more return on investment than Zhangjiagang Freetrade. However, Jilin Jlu is 1.58 times more volatile than Zhangjiagang Freetrade Science. It trades about 0.14 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about 0.18 per unit of risk. If you would invest 712.00 in Jilin Jlu Communication on September 2, 2024 and sell it today you would earn a total of 246.00 from holding Jilin Jlu Communication or generate 34.55% 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. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Jilin Jlu Communication |
| Zhangjiagang Freetrade |
Jilin Jlu and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Zhangjiagang Freetrade
The main advantage of trading using opposite Jilin Jlu and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
| Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. China Construction Bank | Zhangjiagang Freetrade vs. Bank of China |
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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