Correlation Between Chifeng Jilong and Jilin Jlu
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By analyzing existing cross correlation between Chifeng Jilong Gold and Jilin Jlu Communication, you can compare the effects of market volatilities on Chifeng Jilong 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 Chifeng Jilong with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chifeng Jilong and Jilin Jlu.
Diversification Opportunities for Chifeng Jilong and Jilin Jlu
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chifeng and Jilin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chifeng Jilong Gold 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 Chifeng Jilong 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 Chifeng Jilong Gold 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 Chifeng Jilong i.e., Chifeng Jilong and Jilin Jlu go up and down completely randomly.
Pair Corralation between Chifeng Jilong and Jilin Jlu
Assuming the 90 days trading horizon Chifeng Jilong is expected to generate 6.34 times less return on investment than Jilin Jlu. But when comparing it to its historical volatility, Chifeng Jilong Gold is 1.31 times less risky than Jilin Jlu. It trades about 0.01 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 806.00 in Jilin Jlu Communication on September 2, 2024 and sell it today you would earn a total of 152.00 from holding Jilin Jlu Communication or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chifeng Jilong Gold vs. Jilin Jlu Communication
Performance |
| Timeline |
| Chifeng Jilong Gold |
| Jilin Jlu Communication |
Chifeng Jilong and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chifeng Jilong and Jilin Jlu
The main advantage of trading using opposite Chifeng Jilong and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chifeng Jilong 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.| Chifeng Jilong vs. Kunshan Guoli Electronic | Chifeng Jilong vs. Dhc Software Co | Chifeng Jilong vs. Weihai Honglin Electronic | Chifeng Jilong vs. Ningbo Kangqiang Electronics |
| Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology | Jilin Jlu vs. 516220 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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