Correlation Between Shanghai Shuixing and Jilin Jlu
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By analyzing existing cross correlation between Shanghai Shuixing Home and Jilin Jlu Communication, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Jilin Jlu.
Diversification Opportunities for Shanghai Shuixing and Jilin Jlu
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Jilin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and Jilin Jlu go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Jilin Jlu
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 1.09 times more return on investment than Jilin Jlu. However, Shanghai Shuixing is 1.09 times more volatile than Jilin Jlu Communication. It trades about -0.05 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.07 per unit of risk. If you would invest 1,644 in Shanghai Shuixing Home on October 30, 2024 and sell it today you would lose (128.00) from holding Shanghai Shuixing Home or give up 7.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Jilin Jlu Communication
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Jilin Jlu Communication |
Shanghai Shuixing and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Jilin Jlu
The main advantage of trading using opposite Shanghai Shuixing and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Pengxin International Mining | Shanghai Shuixing vs. Guangdong Silvere Sci | Shanghai Shuixing vs. Yingde Greatchem Chemicals | Shanghai Shuixing vs. Bomesc Offshore Engineering |
| Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. China Construction Bank | Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Bank of China |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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