Correlation Between China Eastern and Jilin Jlu
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By analyzing existing cross correlation between China Eastern Airlines and Jilin Jlu Communication, you can compare the effects of market volatilities on China Eastern 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 China Eastern with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Jilin Jlu.
Diversification Opportunities for China Eastern and Jilin Jlu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jilin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines 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 China Eastern 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 China Eastern Airlines 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 China Eastern i.e., China Eastern and Jilin Jlu go up and down completely randomly.
Pair Corralation between China Eastern and Jilin Jlu
Assuming the 90 days trading horizon China Eastern is expected to generate 7.54 times less return on investment than Jilin Jlu. In addition to that, China Eastern is 1.04 times more volatile than Jilin Jlu Communication. It trades about 0.03 of its total potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.23 per unit of volatility. If you would invest 795.00 in Jilin Jlu Communication on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Jilin Jlu Communication or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Jilin Jlu Communication
Performance |
| Timeline |
| China Eastern Airlines |
| Jilin Jlu Communication |
China Eastern and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Jilin Jlu
The main advantage of trading using opposite China Eastern and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern 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.| China Eastern vs. Easyhome New Retail | China Eastern vs. Vohringer Home Technology | China Eastern vs. Nanjing OLO Home | China Eastern vs. Sichuan Fulin Transportation |
| Jilin Jlu vs. Duzhe Publishing Media | Jilin Jlu vs. Thinkingdom Media Group | Jilin Jlu vs. Anhui Jianghuai Automobile | Jilin Jlu vs. Sinomach Automobile 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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