Correlation Between Jilin Jlu and Beijing Baolande
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By analyzing existing cross correlation between Jilin Jlu Communication and Beijing Baolande Software, you can compare the effects of market volatilities on Jilin Jlu and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Beijing Baolande.
Diversification Opportunities for Jilin Jlu and Beijing Baolande
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Beijing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Beijing Baolande go up and down completely randomly.
Pair Corralation between Jilin Jlu and Beijing Baolande
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.42 times less return on investment than Beijing Baolande. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.83 times less risky than Beijing Baolande. It trades about 0.24 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,414 in Beijing Baolande Software on November 5, 2024 and sell it today you would earn a total of 298.00 from holding Beijing Baolande Software or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Beijing Baolande Software
Performance |
| Timeline |
| Jilin Jlu Communication |
| Beijing Baolande Software |
Jilin Jlu and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Beijing Baolande
The main advantage of trading using opposite Jilin Jlu and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Jilin Jlu vs. UE Furniture Co | Jilin Jlu vs. Penyao Environmental Protection | Jilin Jlu vs. Bengang Steel Plates | Jilin Jlu vs. Luolai Home Textile |
| Beijing Baolande vs. Xiangyang Automobile Bearing | Beijing Baolande vs. Quectel Wireless Solutions | Beijing Baolande vs. China Mobile Limited | Beijing Baolande vs. Runjian Communication 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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