Correlation Between Eastern Communications and Jiangxi JDL
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By analyzing existing cross correlation between Eastern Communications Co and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Eastern Communications and Jiangxi JDL 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 Eastern Communications with a short position of Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Jiangxi JDL.
Diversification Opportunities for Eastern Communications and Jiangxi JDL
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Jiangxi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Eastern Communications i.e., Eastern Communications and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Eastern Communications and Jiangxi JDL
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 1.06 times more return on investment than Jiangxi JDL. However, Eastern Communications is 1.06 times more volatile than Jiangxi JDL Environmental. It trades about 0.02 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.0 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Eastern Communications Co or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Eastern Communications |
| Jiangxi JDL Environmental |
Eastern Communications and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Jiangxi JDL
The main advantage of trading using opposite Eastern Communications and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Eastern Communications vs. China Sports Industry | Eastern Communications vs. Linzhou Heavy Machinery | Eastern Communications vs. Anhui Huilong Agricultural | Eastern Communications vs. Lutian Machinery Co |
| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL vs. Holitech Technology Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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