Correlation Between Jilin Jlu and Tibet Huayu
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By analyzing existing cross correlation between Jilin Jlu Communication and Tibet Huayu Mining, you can compare the effects of market volatilities on Jilin Jlu and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Tibet Huayu.
Diversification Opportunities for Jilin Jlu and Tibet Huayu
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Tibet is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Tibet Huayu go up and down completely randomly.
Pair Corralation between Jilin Jlu and Tibet Huayu
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.53 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.05 times less risky than Tibet Huayu. It trades about 0.02 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,131 in Tibet Huayu Mining on October 23, 2024 and sell it today you would earn a total of 140.00 from holding Tibet Huayu Mining or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Tibet Huayu Mining
Performance |
| Timeline |
| Jilin Jlu Communication |
| Tibet Huayu Mining |
Jilin Jlu and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Tibet Huayu
The main advantage of trading using opposite Jilin Jlu and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Jilin Jlu vs. Guangdong Jingyi Metal | Jilin Jlu vs. Changjiang Publishing Media | Jilin Jlu vs. Southern PublishingMedia Co | Jilin Jlu vs. Threes Company Media |
| Tibet Huayu vs. Suzhou Douson Drilling | Tibet Huayu vs. Beijing Kingsoft Office | Tibet Huayu vs. Kingclean Electric Co | Tibet Huayu vs. Shaanxi Meineng Clean |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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