Correlation Between Jilin Jlu and Shaanxi Construction
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By analyzing existing cross correlation between Jilin Jlu Communication and Shaanxi Construction Machinery, you can compare the effects of market volatilities on Jilin Jlu and Shaanxi Construction 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 Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shaanxi Construction.
Diversification Opportunities for Jilin Jlu and Shaanxi Construction
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Shaanxi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Construction 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 Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shaanxi Construction go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shaanxi Construction
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.87 times more return on investment than Shaanxi Construction. However, Jilin Jlu Communication is 1.15 times less risky than Shaanxi Construction. It trades about 0.0 of its potential returns per unit of risk. Shaanxi Construction Machinery is currently generating about -0.09 per unit of risk. If you would invest 884.00 in Jilin Jlu Communication on November 6, 2024 and sell it today you would lose (18.00) from holding Jilin Jlu Communication or give up 2.04% 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. Shaanxi Construction Machinery
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shaanxi Construction |
Jilin Jlu and Shaanxi Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shaanxi Construction
The main advantage of trading using opposite Jilin Jlu and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shaanxi Construction 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 Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.| Jilin Jlu vs. Zhejiang Qianjiang Motorcycle | Jilin Jlu vs. Lutian Machinery Co | Jilin Jlu vs. Tjk Machinery Tianjin | Jilin Jlu vs. Masterwork Machinery |
| Shaanxi Construction vs. Jiangsu Financial Leasing | Shaanxi Construction vs. Hua Xia Bank | Shaanxi Construction vs. Guangzhou Ruoyuchen Information | Shaanxi Construction vs. Sharetronic Data Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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