Correlation Between Suzhou Mingzhi and Jilin Jlu
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By analyzing existing cross correlation between Suzhou Mingzhi Technology and Jilin Jlu Communication, you can compare the effects of market volatilities on Suzhou Mingzhi 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 Suzhou Mingzhi with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and Jilin Jlu.
Diversification Opportunities for Suzhou Mingzhi and Jilin Jlu
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Jilin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi 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 Suzhou Mingzhi 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 Suzhou Mingzhi 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 Suzhou Mingzhi i.e., Suzhou Mingzhi and Jilin Jlu go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and Jilin Jlu
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to generate 0.94 times more return on investment than Jilin Jlu. However, Suzhou Mingzhi Technology is 1.07 times less risky than Jilin Jlu. It trades about 0.04 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about -0.01 per unit of risk. If you would invest 1,769 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 86.00 from holding Suzhou Mingzhi Technology or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. Jilin Jlu Communication
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| Jilin Jlu Communication |
Suzhou Mingzhi and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and Jilin Jlu
The main advantage of trading using opposite Suzhou Mingzhi and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi 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.| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
| Jilin Jlu vs. China National Software | Jilin Jlu vs. Glodon Software Co | Jilin Jlu vs. Linewell Software Co | Jilin Jlu vs. Servyou Software Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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