Correlation Between Jilin Jlu and Shenzhen Transsion
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By analyzing existing cross correlation between Jilin Jlu Communication and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Jilin Jlu and Shenzhen Transsion 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 Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Shenzhen Transsion.
Diversification Opportunities for Jilin Jlu and Shenzhen Transsion
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Shenzhen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Jilin Jlu and Shenzhen Transsion
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 0.95 times more return on investment than Shenzhen Transsion. However, Jilin Jlu Communication is 1.05 times less risky than Shenzhen Transsion. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.04 per unit of risk. If you would invest 669.00 in Jilin Jlu Communication on September 13, 2024 and sell it today you would earn a total of 337.00 from holding Jilin Jlu Communication or generate 50.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Jilin Jlu Communication |
| Shenzhen Transsion |
Jilin Jlu and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Shenzhen Transsion
The main advantage of trading using opposite Jilin Jlu and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
| Shenzhen Transsion vs. Jilin Jlu Communication | Shenzhen Transsion vs. Anhui Transport Consulting | Shenzhen Transsion vs. Western Metal Materials | Shenzhen Transsion vs. State Grid InformationCommunication |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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