Correlation Between China National and Jilin Chemical
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By analyzing existing cross correlation between China National Software and Jilin Chemical Fibre, you can compare the effects of market volatilities on China National and Jilin Chemical 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 National with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Jilin Chemical.
Diversification Opportunities for China National and Jilin Chemical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jilin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China National Software and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and China National 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 National Software are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of China National i.e., China National and Jilin Chemical go up and down completely randomly.
Pair Corralation between China National and Jilin Chemical
Assuming the 90 days trading horizon China National Software is expected to generate 1.16 times more return on investment than Jilin Chemical. However, China National is 1.16 times more volatile than Jilin Chemical Fibre. It trades about 0.0 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.02 per unit of risk. If you would invest 6,158 in China National Software on October 16, 2024 and sell it today you would lose (1,641) from holding China National Software or give up 26.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Jilin Chemical Fibre
Performance |
| Timeline |
| China National Software |
| Jilin Chemical Fibre |
China National and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Jilin Chemical
The main advantage of trading using opposite China National and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National position performs unexpectedly, Jilin Chemical 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 Chemical will offset losses from the drop in Jilin Chemical's long position.| China National vs. Union Semiconductor Co | China National vs. Ningbo Jintian Copper | China National vs. Southchip Semiconductor Technology | China National vs. Sanbo Hospital Management |
| Jilin Chemical vs. Bingo Software Co | Jilin Chemical vs. Servyou Software Group | Jilin Chemical vs. China National Software | Jilin Chemical vs. Guotai Epoint Software |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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