Correlation Between Jilin OLED and Shenzhen SDG
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By analyzing existing cross correlation between Jilin OLED Material and Shenzhen SDG Information, you can compare the effects of market volatilities on Jilin OLED and Shenzhen SDG 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 Jilin OLED with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin OLED and Shenzhen SDG.
Diversification Opportunities for Jilin OLED and Shenzhen SDG
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Shenzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jilin OLED Material and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Jilin OLED 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 Jilin OLED Material are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Jilin OLED i.e., Jilin OLED and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Jilin OLED and Shenzhen SDG
Assuming the 90 days trading horizon Jilin OLED is expected to generate 6.0 times less return on investment than Shenzhen SDG. In addition to that, Jilin OLED is 1.63 times more volatile than Shenzhen SDG Information. It trades about 0.01 of its total potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.11 per unit of volatility. If you would invest 448.00 in Shenzhen SDG Information on October 14, 2024 and sell it today you would earn a total of 78.00 from holding Shenzhen SDG Information or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin OLED Material vs. Shenzhen SDG Information
Performance |
| Timeline |
| Jilin OLED Material |
| Shenzhen SDG Information |
Jilin OLED and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin OLED and Shenzhen SDG
The main advantage of trading using opposite Jilin OLED and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin OLED position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Jilin OLED vs. Postal Savings Bank | Jilin OLED vs. Dymatic Chemicals | Jilin OLED vs. Maoming Petro Chemical Shihua | Jilin OLED vs. Xiamen Bank Co |
| Shenzhen SDG vs. China Building Material | Shenzhen SDG vs. Jilin OLED Material | Shenzhen SDG vs. Lontium Semiconductor Corp | Shenzhen SDG vs. Ningxia Building Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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