Correlation Between Jilin Jlu and Shanghai Yanpu
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By analyzing existing cross correlation between Jilin Jlu Communication and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Jilin Jlu and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shanghai Yanpu.
Diversification Opportunities for Jilin Jlu and Shanghai Yanpu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shanghai Yanpu
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 4.87 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.21 times less risky than Shanghai Yanpu. It trades about 0.07 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,402 in Shanghai Yanpu Metal on September 18, 2024 and sell it today you would earn a total of 578.00 from holding Shanghai Yanpu Metal or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shanghai Yanpu Metal |
Jilin Jlu and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shanghai Yanpu
The main advantage of trading using opposite Jilin Jlu and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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