Correlation Between Jilin Jlu and Sinosteel Luonai
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By analyzing existing cross correlation between Jilin Jlu Communication and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Jilin Jlu and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Sinosteel Luonai.
Diversification Opportunities for Jilin Jlu and Sinosteel Luonai
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Sinosteel is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Jilin Jlu and Sinosteel Luonai
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.53 times more return on investment than Sinosteel Luonai. However, Jilin Jlu is 1.53 times more volatile than Sinosteel Luonai Materials. It trades about 0.1 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.02 per unit of risk. If you would invest 895.00 in Jilin Jlu Communication on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Jilin Jlu Communication or generate 7.04% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Jilin Jlu Communication |
| Sinosteel Luonai Mat |
Jilin Jlu and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Sinosteel Luonai
The main advantage of trading using opposite Jilin Jlu and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
| Sinosteel Luonai vs. Hangzhou Minsheng Healthcare | Sinosteel Luonai vs. Yunnan Jianzhijia Health Chain | Sinosteel Luonai vs. Everjoy Health Group | Sinosteel Luonai vs. By health |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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