Correlation Between Jilin Jlu and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Jilin Jlu Communication and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Jilin Jlu and GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and GigaDevice SemiconductorBei.
Diversification Opportunities for Jilin Jlu and GigaDevice SemiconductorBei
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and GigaDevice is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Jilin Jlu and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.35 times more return on investment than GigaDevice SemiconductorBei. However, Jilin Jlu is 1.35 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.11 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about -0.06 per unit of risk. If you would invest 886.00 in Jilin Jlu Communication on August 31, 2024 and sell it today you would earn a total of 67.00 from holding Jilin Jlu Communication or generate 7.56% 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. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Jilin Jlu Communication |
| GigaDevice SemiconductorBei |
Jilin Jlu and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and GigaDevice SemiconductorBei
The main advantage of trading using opposite Jilin Jlu and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Jilin Jlu vs. Cultural Investment Holdings | Jilin Jlu vs. Gome Telecom Equipment | Jilin Jlu vs. Bus Online Co | Jilin Jlu vs. Holitech Technology Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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