Correlation Between Dongxing Sec and Jilin Jlu
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By analyzing existing cross correlation between Dongxing Sec Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Jilin Jlu.
Diversification Opportunities for Dongxing Sec and Jilin Jlu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Jilin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Jilin Jlu go up and down completely randomly.
Pair Corralation between Dongxing Sec and Jilin Jlu
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.97 times more return on investment than Jilin Jlu. However, Dongxing Sec Co is 1.03 times less risky than Jilin Jlu. It trades about 0.18 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.14 per unit of risk. If you would invest 796.00 in Dongxing Sec Co on September 4, 2024 and sell it today you would earn a total of 354.00 from holding Dongxing Sec Co or generate 44.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Dongxing Sec |
| Jilin Jlu Communication |
Dongxing Sec and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Jilin Jlu
The main advantage of trading using opposite Dongxing Sec and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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