Correlation Between Jilin Jlu and GRIPM Advanced
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By analyzing existing cross correlation between Jilin Jlu Communication and GRIPM Advanced Materials, you can compare the effects of market volatilities on Jilin Jlu and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and GRIPM Advanced.
Diversification Opportunities for Jilin Jlu and GRIPM Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and GRIPM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Jilin Jlu and GRIPM Advanced
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.35 times less return on investment than GRIPM Advanced. In addition to that, Jilin Jlu is 1.26 times more volatile than GRIPM Advanced Materials. It trades about 0.1 of its total potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.18 per unit of volatility. If you would invest 2,964 in GRIPM Advanced Materials on September 1, 2024 and sell it today you would earn a total of 316.00 from holding GRIPM Advanced Materials or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Jilin Jlu Communication |
| GRIPM Advanced Materials |
Jilin Jlu and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and GRIPM Advanced
The main advantage of trading using opposite Jilin Jlu and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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