Correlation Between Zhejiang Yayi and Jilin Jlu
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Jilin Jlu Communication, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Jilin Jlu.
Diversification Opportunities for Zhejiang Yayi and Jilin Jlu
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Jilin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal 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 Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Jilin Jlu go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Jilin Jlu
Assuming the 90 days trading horizon Zhejiang Yayi is expected to generate 2.0 times less return on investment than Jilin Jlu. In addition to that, Zhejiang Yayi is 1.11 times more volatile than Jilin Jlu Communication. It trades about 0.01 of its total potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.03 per unit of volatility. If you would invest 801.00 in Jilin Jlu Communication on September 4, 2024 and sell it today you would earn a total of 160.00 from holding Jilin Jlu Communication or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Jilin Jlu Communication
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Jilin Jlu Communication |
Zhejiang Yayi and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Jilin Jlu
The main advantage of trading using opposite Zhejiang Yayi and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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