Correlation Between Industrial and Jilin Jlu
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By analyzing existing cross correlation between Industrial and Commercial and Jilin Jlu Communication, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Jilin Jlu.
Diversification Opportunities for Industrial and Jilin Jlu
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Jilin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Jilin Jlu go up and down completely randomly.
Pair Corralation between Industrial and Jilin Jlu
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.36 times more return on investment than Jilin Jlu. However, Industrial and Commercial is 2.75 times less risky than Jilin Jlu. It trades about 0.11 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.0 per unit of risk. If you would invest 473.00 in Industrial and Commercial on November 5, 2024 and sell it today you would earn a total of 209.00 from holding Industrial and Commercial or generate 44.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Jilin Jlu Communication
Performance |
| Timeline |
| Industrial and Commercial |
| Jilin Jlu Communication |
Industrial and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Jilin Jlu
The main advantage of trading using opposite Industrial and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. V V Food | Industrial vs. Youyou Foods Co | Industrial vs. Dazhong Transportation Group | Industrial vs. Anji Foodstuff Co |
| Jilin Jlu vs. Duzhe Publishing Media | Jilin Jlu vs. Thinkingdom Media Group | Jilin Jlu vs. Anhui Jianghuai Automobile | Jilin Jlu vs. Sinomach Automobile 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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