Correlation Between Jilin Jlu and Semiconductor Manufacturing
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By analyzing existing cross correlation between Jilin Jlu Communication and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Jilin Jlu and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Semiconductor Manufacturing.
Diversification Opportunities for Jilin Jlu and Semiconductor Manufacturing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jilin and Semiconductor is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Jilin Jlu and Semiconductor Manufacturing
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.08 times more return on investment than Semiconductor Manufacturing. However, Jilin Jlu is 1.08 times more volatile than Semiconductor Manufacturing Electronics. It trades about 0.08 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about 0.06 per unit of risk. If you would invest 665.00 in Jilin Jlu Communication on November 3, 2024 and sell it today you would earn a total of 201.00 from holding Jilin Jlu Communication or generate 30.23% 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. Semiconductor Manufacturing El
Performance |
| Timeline |
| Jilin Jlu Communication |
| Semiconductor Manufacturing |
Jilin Jlu and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Semiconductor Manufacturing
The main advantage of trading using opposite Jilin Jlu and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Jilin Jlu vs. Tonghua Grape Wine | Jilin Jlu vs. Zhongshan Public Utilities | Jilin Jlu vs. Southern PublishingMedia Co | Jilin Jlu vs. Northern United Publishing |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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