Correlation Between Jinsanjiang Silicon and Jilin Jlu
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Jilin Jlu Communication, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Jilin Jlu.
Diversification Opportunities for Jinsanjiang Silicon and Jilin Jlu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinsanjiang and Jilin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon Material 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Jilin Jlu go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Jilin Jlu
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.15 times more return on investment than Jilin Jlu. However, Jinsanjiang Silicon is 1.15 times more volatile than Jilin Jlu Communication. It trades about 0.15 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 862.00 in Jinsanjiang Silicon Material on September 25, 2024 and sell it today you would earn a total of 397.00 from holding Jinsanjiang Silicon Material or generate 46.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinsanjiang Silicon Material vs. Jilin Jlu Communication
Performance |
Timeline |
Jinsanjiang Silicon |
Jilin Jlu Communication |
Jinsanjiang Silicon and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinsanjiang Silicon and Jilin Jlu
The main advantage of trading using opposite Jinsanjiang Silicon and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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