Correlation Between Hengerda New and Jilin Jlu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengerda New Materials and Jilin Jlu Communication, you can compare the effects of market volatilities on Hengerda New and Jilin Jlu 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 Hengerda New with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengerda New and Jilin Jlu.
Diversification Opportunities for Hengerda New and Jilin Jlu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengerda and Jilin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hengerda New Materials and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Hengerda New 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 Hengerda New Materials are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Hengerda New i.e., Hengerda New and Jilin Jlu go up and down completely randomly.
Pair Corralation between Hengerda New and Jilin Jlu
Assuming the 90 days trading horizon Hengerda New Materials is expected to generate 0.91 times more return on investment than Jilin Jlu. However, Hengerda New Materials is 1.1 times less risky than Jilin Jlu. It trades about 0.11 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.1 per unit of risk. If you would invest 2,260 in Hengerda New Materials on September 25, 2024 and sell it today you would earn a total of 550.00 from holding Hengerda New Materials or generate 24.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hengerda New Materials vs. Jilin Jlu Communication
Performance |
Timeline |
Hengerda New Materials |
Jilin Jlu Communication |
Hengerda New and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengerda New and Jilin Jlu
The main advantage of trading using opposite Hengerda New and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengerda New position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.Hengerda New vs. Bank of China | Hengerda New vs. Kweichow Moutai Co | Hengerda New vs. PetroChina Co Ltd | Hengerda New vs. Bank of Communications |
Jilin Jlu vs. Jiangxi Naipu Mining | Jilin Jlu vs. Suzhou Xingye Material | Jilin Jlu vs. Jinsanjiang Silicon Material | Jilin Jlu vs. Hengerda New 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |