Correlation Between Jilin Jlu and Xilinmen Furniture
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By analyzing existing cross correlation between Jilin Jlu Communication and Xilinmen Furniture Co, you can compare the effects of market volatilities on Jilin Jlu and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Xilinmen Furniture.
Diversification Opportunities for Jilin Jlu and Xilinmen Furniture
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Xilinmen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Jilin Jlu and Xilinmen Furniture
Assuming the 90 days trading horizon Jilin Jlu Communication is expected to generate 1.4 times more return on investment than Xilinmen Furniture. However, Jilin Jlu is 1.4 times more volatile than Xilinmen Furniture Co. It trades about 0.02 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.01 per unit of risk. If you would invest 918.00 in Jilin Jlu Communication on September 25, 2024 and sell it today you would lose (14.00) from holding Jilin Jlu Communication or give up 1.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jilin Jlu Communication vs. Xilinmen Furniture Co
Performance |
Timeline |
Jilin Jlu Communication |
Xilinmen Furniture |
Jilin Jlu and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jilin Jlu and Xilinmen Furniture
The main advantage of trading using opposite Jilin Jlu and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.Jilin Jlu vs. Jiangxi Naipu Mining | Jilin Jlu vs. Suzhou Xingye Material | Jilin Jlu vs. Jinsanjiang Silicon Material | Jilin Jlu vs. Hengerda New Materials |
Xilinmen Furniture vs. Jilin Jlu Communication | Xilinmen Furniture vs. Allwin Telecommunication Co | Xilinmen Furniture vs. Guangzhou Haige Communications | Xilinmen Furniture vs. Masterwork Machinery |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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