Correlation Between Long Yuan and Jilin Jlu
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By analyzing existing cross correlation between Long Yuan Construction and Jilin Jlu Communication, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Jilin Jlu.
Diversification Opportunities for Long Yuan and Jilin Jlu
Almost no diversification
The 3 months correlation between Long and Jilin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and Jilin Jlu go up and down completely randomly.
Pair Corralation between Long Yuan and Jilin Jlu
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 1.11 times less risky than Jilin Jlu. The stock trades about 0.0 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Jilin Jlu Communication on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Jilin Jlu Communication or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Jilin Jlu Communication
Performance |
| Timeline |
| Long Yuan Construction |
| Jilin Jlu Communication |
Long Yuan and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Jilin Jlu
The main advantage of trading using opposite Long Yuan and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Hua Xia Bank | Long Yuan vs. Allwin Telecommunication Co | Long Yuan vs. Agricultural Bank of | Long Yuan vs. Sunwave Communications Co |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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