Correlation Between Beijing Mainstreets and Jinling Hotel
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Jinling Hotel Corp, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Jinling Hotel.
Diversification Opportunities for Beijing Mainstreets and Jinling Hotel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Jinling is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment 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 Beijing Mainstreets 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 Beijing Mainstreets Investment 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 Beijing Mainstreets i.e., Beijing Mainstreets and Jinling Hotel go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Jinling Hotel
Assuming the 90 days trading horizon Beijing Mainstreets is expected to generate 1.24 times less return on investment than Jinling Hotel. In addition to that, Beijing Mainstreets is 1.84 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 0.03 per unit of volatility. If you would invest 662.00 in Jinling Hotel Corp on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Jinling Hotel Corp or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Jinling Hotel Corp
Performance |
| Timeline |
| Beijing Mainstreets |
| Jinling Hotel Corp |
Beijing Mainstreets and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Jinling Hotel
The main advantage of trading using opposite Beijing Mainstreets and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.| Beijing Mainstreets vs. Lootom Telcovideo Network | Beijing Mainstreets vs. Hua Xia Bank | Beijing Mainstreets vs. Eastroc Beverage Group | Beijing Mainstreets vs. Panda Financial Holding |
| Jinling Hotel vs. Hua Xia Bank | Jinling Hotel vs. HeNan Splendor Science | Jinling Hotel vs. Tibet Huayu Mining | Jinling Hotel vs. Offshore Oil Engineering |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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