Correlation Between Jilin Jlu and China Merchants
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By analyzing existing cross correlation between Jilin Jlu Communication and China Merchants Shekou, you can compare the effects of market volatilities on Jilin Jlu and China Merchants 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 Jlu with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and China Merchants.
Diversification Opportunities for Jilin Jlu and China Merchants
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou and Jilin Jlu 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 Jlu Communication are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and China Merchants go up and down completely randomly.
Pair Corralation between Jilin Jlu and China Merchants
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.24 times more return on investment than China Merchants. However, Jilin Jlu is 1.24 times more volatile than China Merchants Shekou. It trades about 0.13 of its potential returns per unit of risk. China Merchants Shekou is currently generating about 0.07 per unit of risk. If you would invest 749.00 in Jilin Jlu Communication on September 24, 2024 and sell it today you would earn a total of 237.00 from holding Jilin Jlu Communication or generate 31.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Jlu Communication vs. China Merchants Shekou
Performance |
Timeline |
Jilin Jlu Communication |
China Merchants Shekou |
Jilin Jlu and China Merchants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and China Merchants
The main advantage of trading using opposite Jilin Jlu and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.Jilin Jlu vs. Ming Yang Smart | Jilin Jlu vs. 159681 | Jilin Jlu vs. 159005 | Jilin Jlu vs. Loctek Ergonomic Technology |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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