Correlation Between Jilin Jlu and Suzhou Mingzhi
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By analyzing existing cross correlation between Jilin Jlu Communication and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Jilin Jlu and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Suzhou Mingzhi.
Diversification Opportunities for Jilin Jlu and Suzhou Mingzhi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Suzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Jilin Jlu and Suzhou Mingzhi
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to under-perform the Suzhou Mingzhi. In addition to that, Jilin Jlu is 1.07 times more volatile than Suzhou Mingzhi Technology. It trades about -0.01 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,769 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 86.00 from holding Suzhou Mingzhi Technology or generate 4.86% 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. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Jilin Jlu Communication |
| Suzhou Mingzhi Technology |
Jilin Jlu and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Suzhou Mingzhi
The main advantage of trading using opposite Jilin Jlu and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
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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