Correlation Between Jilin Jlu and Bank of Chengdu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jilin Jlu Communication and Bank of Chengdu, you can compare the effects of market volatilities on Jilin Jlu and Bank of Chengdu 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 Bank of Chengdu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Bank of Chengdu.
Diversification Opportunities for Jilin Jlu and Bank of Chengdu
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jilin and Bank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Bank of Chengdu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Chengdu 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 Bank of Chengdu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Chengdu has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Bank of Chengdu go up and down completely randomly.
Pair Corralation between Jilin Jlu and Bank of Chengdu
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Bank of Chengdu. In addition to that, Jilin Jlu is 1.86 times more volatile than Bank of Chengdu. It trades about -0.09 of its total potential returns per unit of risk. Bank of Chengdu is currently generating about 0.05 per unit of volatility. If you would invest 1,646 in Bank of Chengdu on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Bank of Chengdu or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Bank of Chengdu
Performance |
| Timeline |
| Jilin Jlu Communication |
| Bank of Chengdu |
Jilin Jlu and Bank of Chengdu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Bank of Chengdu
The main advantage of trading using opposite Jilin Jlu and Bank of Chengdu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Bank of Chengdu 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 Bank of Chengdu will offset losses from the drop in Bank of Chengdu's long position.| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
| Bank of Chengdu vs. Suzhou Mingzhi Technology | Bank of Chengdu vs. Jilin Jlu Communication | Bank of Chengdu vs. China Eastern Airlines | Bank of Chengdu vs. XiaMen HongXin Electron tech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |