Correlation Between Huatian Hotel and Jinling Hotel
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By analyzing existing cross correlation between Huatian Hotel Group and Jinling Hotel Corp, you can compare the effects of market volatilities on Huatian Hotel and Jinling Hotel 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 Huatian Hotel with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Jinling Hotel.
Diversification Opportunities for Huatian Hotel and Jinling Hotel
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huatian and Jinling is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp and Huatian Hotel 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 Huatian Hotel Group are associated (or correlated) with Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Jinling Hotel go up and down completely randomly.
Pair Corralation between Huatian Hotel and Jinling Hotel
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the Jinling Hotel. In addition to that, Huatian Hotel is 1.23 times more volatile than Jinling Hotel Corp. It trades about -0.01 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.01 per unit of volatility. If you would invest 787.00 in Jinling Hotel Corp on August 25, 2024 and sell it today you would lose (112.00) from holding Jinling Hotel Corp or give up 14.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Jinling Hotel Corp
Performance |
| Timeline |
| Huatian Hotel Group |
| Jinling Hotel Corp |
Huatian Hotel and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Jinling Hotel
The main advantage of trading using opposite Huatian Hotel and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Huatian Hotel vs. Biwin Storage Technology | Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. China Construction Bank |
| Jinling Hotel vs. Ningbo Fangzheng Automobile | Jinling Hotel vs. Road Environment Technology | Jinling Hotel vs. Glodon Software Co | Jinling Hotel vs. Linewell Software 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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