Correlation Between YiDong Electronics and Jilin Jlu
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By analyzing existing cross correlation between YiDong Electronics Technology and Jilin Jlu Communication, you can compare the effects of market volatilities on YiDong Electronics 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 YiDong Electronics with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Jilin Jlu.
Diversification Opportunities for YiDong Electronics and Jilin Jlu
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YiDong and Jilin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology 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 YiDong Electronics 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 YiDong Electronics Technology 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 YiDong Electronics i.e., YiDong Electronics and Jilin Jlu go up and down completely randomly.
Pair Corralation between YiDong Electronics and Jilin Jlu
Assuming the 90 days trading horizon YiDong Electronics is expected to generate 1.5 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, YiDong Electronics Technology is 1.02 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 990.00 in Jilin Jlu Communication on September 14, 2024 and sell it today you would earn a total of 26.00 from holding Jilin Jlu Communication or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Jilin Jlu Communication
Performance |
| Timeline |
| YiDong Electronics |
| Jilin Jlu Communication |
YiDong Electronics and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Jilin Jlu
The main advantage of trading using opposite YiDong Electronics and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics 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.| YiDong Electronics vs. Focus Media Information | YiDong Electronics vs. State Grid InformationCommunication | YiDong Electronics vs. Datang HuaYin Electric | YiDong Electronics vs. Jilin Jlu Communication |
| Jilin Jlu vs. Lootom Telcovideo Network | Jilin Jlu vs. Hainan Haiqi Transportation | Jilin Jlu vs. China Sports Industry | Jilin Jlu vs. Unisplendour Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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