Correlation Between Jilin Jlu and Sichuan Hebang
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By analyzing existing cross correlation between Jilin Jlu Communication and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Jilin Jlu and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Sichuan Hebang.
Diversification Opportunities for Jilin Jlu and Sichuan Hebang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Sichuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Jilin Jlu and Sichuan Hebang
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.6 times more return on investment than Sichuan Hebang. However, Jilin Jlu is 1.6 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.06 per unit of risk. If you would invest 657.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 304.00 from holding Jilin Jlu Communication or generate 46.27% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Sichuan Hebang Biote |
Jilin Jlu and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Sichuan Hebang
The main advantage of trading using opposite Jilin Jlu and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's 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 |
| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Hoshine Silicon Ind |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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