Correlation Between Dalian Thermal and JCET Group
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By analyzing existing cross correlation between Dalian Thermal Power and JCET Group Co, you can compare the effects of market volatilities on Dalian Thermal and JCET Group 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 Dalian Thermal with a short position of JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and JCET Group.
Diversification Opportunities for Dalian Thermal and JCET Group
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and JCET is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and JCET Group go up and down completely randomly.
Pair Corralation between Dalian Thermal and JCET Group
Assuming the 90 days trading horizon Dalian Thermal Power is expected to under-perform the JCET Group. In addition to that, Dalian Thermal is 1.43 times more volatile than JCET Group Co. It trades about -0.03 of its total potential returns per unit of risk. JCET Group Co is currently generating about 0.07 per unit of volatility. If you would invest 3,137 in JCET Group Co on September 27, 2024 and sell it today you would earn a total of 756.00 from holding JCET Group Co or generate 24.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. JCET Group Co
Performance |
| Timeline |
| Dalian Thermal Power |
| JCET Group |
Dalian Thermal and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and JCET Group
The main advantage of trading using opposite Dalian Thermal and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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