Correlation Between Yangmei Chemical and Jilin Jlu
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By analyzing existing cross correlation between Yangmei Chemical Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Yangmei Chemical 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 Yangmei Chemical with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Jilin Jlu.
Diversification Opportunities for Yangmei Chemical and Jilin Jlu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yangmei and Jilin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co 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 Yangmei Chemical 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 Yangmei Chemical Co 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 Yangmei Chemical i.e., Yangmei Chemical and Jilin Jlu go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Jilin Jlu
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Yangmei Chemical Co is 1.17 times less risky than Jilin Jlu. The stock trades about -0.02 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 879.00 in Jilin Jlu Communication on November 2, 2024 and sell it today you would lose (13.00) from holding Jilin Jlu Communication or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Yangmei Chemical |
| Jilin Jlu Communication |
Yangmei Chemical and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Jilin Jlu
The main advantage of trading using opposite Yangmei Chemical and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical 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.| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor Co |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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