Correlation Between Jilin OLED and Xiangtan Electrochemical
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By analyzing existing cross correlation between Jilin OLED Material and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Jilin OLED and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin OLED and Xiangtan Electrochemical.
Diversification Opportunities for Jilin OLED and Xiangtan Electrochemical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Xiangtan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jilin OLED Material and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Jilin OLED i.e., Jilin OLED and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Jilin OLED and Xiangtan Electrochemical
Assuming the 90 days trading horizon Jilin OLED Material is expected to under-perform the Xiangtan Electrochemical. In addition to that, Jilin OLED is 1.82 times more volatile than Xiangtan Electrochemical Scientific. It trades about -0.29 of its total potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about -0.41 per unit of volatility. If you would invest 1,162 in Xiangtan Electrochemical Scientific on October 11, 2024 and sell it today you would lose (167.00) from holding Xiangtan Electrochemical Scientific or give up 14.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin OLED Material vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Jilin OLED Material |
| Xiangtan Electrochemical |
Jilin OLED and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin OLED and Xiangtan Electrochemical
The main advantage of trading using opposite Jilin OLED and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin OLED position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Jilin OLED vs. Shenwu Energy Saving | Jilin OLED vs. GRG Banking Equipment | Jilin OLED vs. Hengli Industrial Development | Jilin OLED vs. Western Metal 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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