Correlation Between Jilin Jlu and Chongqing Gas
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By analyzing existing cross correlation between Jilin Jlu Communication and Chongqing Gas Grp, you can compare the effects of market volatilities on Jilin Jlu and Chongqing Gas 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 Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Chongqing Gas.
Diversification Opportunities for Jilin Jlu and Chongqing Gas
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Chongqing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp 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 Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Chongqing Gas go up and down completely randomly.
Pair Corralation between Jilin Jlu and Chongqing Gas
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.8 times more return on investment than Chongqing Gas. However, Jilin Jlu is 1.8 times more volatile than Chongqing Gas Grp. It trades about 0.13 of its potential returns per unit of risk. Chongqing Gas Grp is currently generating about 0.15 per unit of risk. If you would invest 729.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 229.00 from holding Jilin Jlu Communication or generate 31.41% 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. Chongqing Gas Grp
Performance |
| Timeline |
| Jilin Jlu Communication |
| Chongqing Gas Grp |
Jilin Jlu and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Chongqing Gas
The main advantage of trading using opposite Jilin Jlu and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| Jilin Jlu vs. Caihong Display Devices | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Dhc Software Co |
| Chongqing Gas vs. Zhejiang Yayi Metal | Chongqing Gas vs. Shandong Hongchuang Aluminum | Chongqing Gas vs. Guangdong Jingyi Metal | Chongqing Gas vs. Jilin Jlu Communication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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