Correlation Between Dawning Information and Jilin Jlu
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By analyzing existing cross correlation between Dawning Information Industry and Jilin Jlu Communication, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Jilin Jlu.
Diversification Opportunities for Dawning Information and Jilin Jlu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dawning and Jilin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Jilin Jlu go up and down completely randomly.
Pair Corralation between Dawning Information and Jilin Jlu
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.42 times more return on investment than Jilin Jlu. However, Dawning Information is 1.42 times more volatile than Jilin Jlu Communication. It trades about 0.32 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.1 per unit of risk. If you would invest 6,120 in Dawning Information Industry on September 1, 2024 and sell it today you would earn a total of 2,360 from holding Dawning Information Industry or generate 38.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Jilin Jlu Communication
Performance |
| Timeline |
| Dawning Information |
| Jilin Jlu Communication |
Dawning Information and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Jilin Jlu
The main advantage of trading using opposite Dawning Information and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Anhui Conch Cement | Dawning Information vs. Sungrow Power Supply | Dawning Information vs. Shenzhen New Nanshan |
| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
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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