Correlation Between Lingyuan Iron and Jilin OLED
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By analyzing existing cross correlation between Lingyuan Iron Steel and Jilin OLED Material, you can compare the effects of market volatilities on Lingyuan Iron and Jilin OLED 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 Lingyuan Iron with a short position of Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lingyuan Iron and Jilin OLED.
Diversification Opportunities for Lingyuan Iron and Jilin OLED
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lingyuan and Jilin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lingyuan Iron Steel and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material and Lingyuan Iron 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 Lingyuan Iron Steel are associated (or correlated) with Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of Lingyuan Iron i.e., Lingyuan Iron and Jilin OLED go up and down completely randomly.
Pair Corralation between Lingyuan Iron and Jilin OLED
Assuming the 90 days trading horizon Lingyuan Iron Steel is expected to under-perform the Jilin OLED. But the stock apears to be less risky and, when comparing its historical volatility, Lingyuan Iron Steel is 1.62 times less risky than Jilin OLED. The stock trades about -0.24 of its potential returns per unit of risk. The Jilin OLED Material is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,551 in Jilin OLED Material on October 12, 2024 and sell it today you would lose (503.00) from holding Jilin OLED Material or give up 19.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lingyuan Iron Steel vs. Jilin OLED Material
Performance |
| Timeline |
| Lingyuan Iron Steel |
| Jilin OLED Material |
Lingyuan Iron and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lingyuan Iron and Jilin OLED
The main advantage of trading using opposite Lingyuan Iron and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lingyuan Iron position performs unexpectedly, Jilin OLED 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 OLED will offset losses from the drop in Jilin OLED's long position.| Lingyuan Iron vs. Zijin Mining Group | Lingyuan Iron vs. Wanhua Chemical Group | Lingyuan Iron vs. Baoshan Iron Steel | Lingyuan Iron vs. Shandong Gold Mining |
| Jilin OLED vs. Elite Color Environmental | Jilin OLED vs. Zhongshan Broad Ocean Motor | Jilin OLED vs. Xinjiang Beixin RoadBridge | Jilin OLED vs. Lingyuan 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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