Correlation Between Jilin Jlu and Western Superconducting
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By analyzing existing cross correlation between Jilin Jlu Communication and Western Superconducting Tech, you can compare the effects of market volatilities on Jilin Jlu and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Western Superconducting.
Diversification Opportunities for Jilin Jlu and Western Superconducting
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Western is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Western Superconducting go up and down completely randomly.
Pair Corralation between Jilin Jlu and Western Superconducting
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.18 times more return on investment than Western Superconducting. However, Jilin Jlu is 1.18 times more volatile than Western Superconducting Tech. It trades about 0.02 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about -0.01 per unit of risk. If you would invest 942.00 in Jilin Jlu Communication on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Jilin Jlu Communication or generate 1.7% 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. Western Superconducting Tech
Performance |
| Timeline |
| Jilin Jlu Communication |
| Western Superconducting |
Jilin Jlu and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Western Superconducting
The main advantage of trading using opposite Jilin Jlu and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting'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 |
| Western Superconducting vs. Spring Airlines Co | Western Superconducting vs. Guocheng Mining Co | Western Superconducting vs. Uroica Mining Safety | Western Superconducting vs. Dalian Thermal Power |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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