Correlation Between Jilin Jlu and Jiangyin Jianghua
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Jilin Jlu and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiangyin Jianghua.
Diversification Opportunities for Jilin Jlu and Jiangyin Jianghua
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Jiangyin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiangyin Jianghua
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 4.73 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.32 times less risky than Jiangyin Jianghua. It trades about 0.11 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,540 in Jiangyin Jianghua Microelectronics on August 30, 2024 and sell it today you would earn a total of 744.00 from holding Jiangyin Jianghua Microelectronics or generate 48.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiangyin Jianghua |
Jilin Jlu and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiangyin Jianghua
The main advantage of trading using opposite Jilin Jlu and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Jilin Jlu vs. Shenzhen MTC Co | Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. Changzhou Almaden Co | Jilin Jlu vs. 159681 |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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