Correlation Between Cinda Securities and Jilin Jlu
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By analyzing existing cross correlation between Cinda Securities Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Jilin Jlu.
Diversification Opportunities for Cinda Securities and Jilin Jlu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Jilin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities 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 Cinda Securities 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 Cinda Securities 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 Cinda Securities i.e., Cinda Securities and Jilin Jlu go up and down completely randomly.
Pair Corralation between Cinda Securities and Jilin Jlu
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.44 times less risky than Jilin Jlu. The stock trades about -0.19 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 969.00 in Jilin Jlu Communication on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Jilin Jlu Communication or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Cinda Securities |
| Jilin Jlu Communication |
Cinda Securities and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Jilin Jlu
The main advantage of trading using opposite Cinda Securities and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China Mobile Limited | Cinda Securities vs. Industrial and Commercial |
| Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. Bank of China | Jilin Jlu vs. PetroChina Co Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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