Correlation Between Shengda Mining and Jinling Hotel
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By analyzing existing cross correlation between Shengda Mining Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Shengda Mining 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 Shengda Mining with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Jinling Hotel.
Diversification Opportunities for Shengda Mining and Jinling Hotel
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Jinling is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co 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 Shengda Mining 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 Shengda Mining Co 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 Shengda Mining i.e., Shengda Mining and Jinling Hotel go up and down completely randomly.
Pair Corralation between Shengda Mining and Jinling Hotel
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.82 times more return on investment than Jinling Hotel. However, Shengda Mining Co is 1.23 times less risky than Jinling Hotel. It trades about 0.12 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.09 per unit of risk. If you would invest 1,276 in Shengda Mining Co on October 30, 2024 and sell it today you would earn a total of 108.00 from holding Shengda Mining Co or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Jinling Hotel Corp
Performance |
| Timeline |
| Shengda Mining |
| Jinling Hotel Corp |
Shengda Mining and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Jinling Hotel
The main advantage of trading using opposite Shengda Mining and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining 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.| Shengda Mining vs. Xinjiang Baodi Mining | Shengda Mining vs. China Publishing Media | Shengda Mining vs. Western Metal Materials | Shengda Mining vs. Thinkingdom Media Group |
| Jinling Hotel vs. Guangzhou Haige Communications | Jinling Hotel vs. Beijing Jiaman Dress | Jinling Hotel vs. GRINM Semiconductor Materials | Jinling Hotel vs. Xinjiang Communications Construction |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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