Correlation Between Xiamen Goldenhome and Jilin Jlu
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Jilin Jlu.
Diversification Opportunities for Xiamen Goldenhome and Jilin Jlu
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Jilin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Jilin Jlu go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Jilin Jlu
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 0.63 times more return on investment than Jilin Jlu. However, Xiamen Goldenhome Co is 1.58 times less risky than Jilin Jlu. It trades about -0.23 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.21 per unit of risk. If you would invest 2,227 in Xiamen Goldenhome Co on October 17, 2024 and sell it today you would lose (246.00) from holding Xiamen Goldenhome Co or give up 11.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Jilin Jlu Communication
Performance |
| Timeline |
| Xiamen Goldenhome |
| Jilin Jlu Communication |
Xiamen Goldenhome and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Jilin Jlu
The main advantage of trading using opposite Xiamen Goldenhome and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. RoadMain T Co | Xiamen Goldenhome vs. Shenyang Chemical Industry | Xiamen Goldenhome vs. Jiangsu Broadcasting Cable | Xiamen Goldenhome vs. Sichuan Fulin Transportation |
| Jilin Jlu vs. Shandong Polymer Biochemicals | Jilin Jlu vs. Yingde Greatchem Chemicals | Jilin Jlu vs. Xiamen Goldenhome Co | Jilin Jlu vs. Shenzhen Noposion Agrochemicals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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