Correlation Between Road Environment and Jilin Jlu
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By analyzing existing cross correlation between Road Environment Technology and Jilin Jlu Communication, you can compare the effects of market volatilities on Road Environment 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 Road Environment with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Jilin Jlu.
Diversification Opportunities for Road Environment and Jilin Jlu
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Road and Jilin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology 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 Road Environment 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 Road Environment Technology 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 Road Environment i.e., Road Environment and Jilin Jlu go up and down completely randomly.
Pair Corralation between Road Environment and Jilin Jlu
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Road Environment Technology is 1.2 times less risky than Jilin Jlu. The stock trades about -0.05 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 912.00 in Jilin Jlu Communication on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Jilin Jlu Communication or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Jilin Jlu Communication
Performance |
| Timeline |
| Road Environment Tec |
| Jilin Jlu Communication |
Road Environment and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Jilin Jlu
The main advantage of trading using opposite Road Environment and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment 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.| Road Environment vs. Cambricon Technologies Corp | Road Environment vs. Loongson Technology Corp | Road Environment vs. Chongqing Road Bridge | Road Environment vs. Shenzhen Fortune Trend |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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