Correlation Between TianJin 712 and Jilin Jlu
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By analyzing existing cross correlation between TianJin 712 Communication and Jilin Jlu Communication, you can compare the effects of market volatilities on TianJin 712 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 TianJin 712 with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Jilin Jlu.
Diversification Opportunities for TianJin 712 and Jilin Jlu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TianJin and Jilin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication 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 TianJin 712 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 TianJin 712 Communication 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 TianJin 712 i.e., TianJin 712 and Jilin Jlu go up and down completely randomly.
Pair Corralation between TianJin 712 and Jilin Jlu
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 1.72 times more return on investment than Jilin Jlu. However, TianJin 712 is 1.72 times more volatile than Jilin Jlu Communication. It trades about 0.25 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 1,735 in TianJin 712 Communication on September 18, 2024 and sell it today you would earn a total of 386.00 from holding TianJin 712 Communication or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
TianJin 712 Communication vs. Jilin Jlu Communication
Performance |
| Timeline |
| TianJin 712 Communication |
| Jilin Jlu Communication |
TianJin 712 and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Jilin Jlu
The main advantage of trading using opposite TianJin 712 and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 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.| TianJin 712 vs. Industrial and Commercial | TianJin 712 vs. China Construction Bank | TianJin 712 vs. Bank of China | TianJin 712 vs. Agricultural Bank of |
| Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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