Correlation Between Yingde Greatchem and Jilin Jlu
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Jilin Jlu Communication, you can compare the effects of market volatilities on Yingde Greatchem and Jilin Jlu 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 Yingde Greatchem with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Jilin Jlu.
Diversification Opportunities for Yingde Greatchem and Jilin Jlu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Jilin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Jilin Jlu go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Jilin Jlu
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.76 times more return on investment than Jilin Jlu. However, Yingde Greatchem Chemicals is 1.31 times less risky than Jilin Jlu. It trades about 0.04 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.03 per unit of risk. If you would invest 2,298 in Yingde Greatchem Chemicals on October 30, 2024 and sell it today you would earn a total of 27.00 from holding Yingde Greatchem Chemicals or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Jilin Jlu Communication
Performance |
| Timeline |
| Yingde Greatchem Che |
| Jilin Jlu Communication |
Yingde Greatchem and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Jilin Jlu
The main advantage of trading using opposite Yingde Greatchem and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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