Correlation Between Kangxin New and Jilin Jlu
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By analyzing existing cross correlation between Kangxin New Materials and Jilin Jlu Communication, you can compare the effects of market volatilities on Kangxin New 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 Kangxin New with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Jilin Jlu.
Diversification Opportunities for Kangxin New and Jilin Jlu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Jilin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials 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 Kangxin New 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 Kangxin New Materials 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 Kangxin New i.e., Kangxin New and Jilin Jlu go up and down completely randomly.
Pair Corralation between Kangxin New and Jilin Jlu
Assuming the 90 days trading horizon Kangxin New Materials is expected to generate 1.01 times more return on investment than Jilin Jlu. However, Kangxin New is 1.01 times more volatile than Jilin Jlu Communication. It trades about 0.1 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.1 per unit of risk. If you would invest 221.00 in Kangxin New Materials on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Kangxin New Materials or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Jilin Jlu Communication
Performance |
| Timeline |
| Kangxin New Materials |
| Jilin Jlu Communication |
Kangxin New and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Jilin Jlu
The main advantage of trading using opposite Kangxin New and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New 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.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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