Correlation Between Shanghai Yanpu and Jilin Jlu
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Jilin Jlu Communication, you can compare the effects of market volatilities on Shanghai Yanpu 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 Yanpu with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Jilin Jlu.
Diversification Opportunities for Shanghai Yanpu and Jilin Jlu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Jilin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Yanpu 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 Yanpu Metal 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 Yanpu i.e., Shanghai Yanpu and Jilin Jlu go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Jilin Jlu
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.21 times more return on investment than Jilin Jlu. However, Shanghai Yanpu is 1.21 times more volatile than Jilin Jlu Communication. It trades about 0.27 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 3,402 in Shanghai Yanpu Metal on September 18, 2024 and sell it today you would earn a total of 578.00 from holding Shanghai Yanpu Metal or generate 16.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. Jilin Jlu Communication
Performance |
Timeline |
Shanghai Yanpu Metal |
Jilin Jlu Communication |
Shanghai Yanpu and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Jilin Jlu
The main advantage of trading using opposite Shanghai Yanpu and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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 Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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