Correlation Between Xiandai Investment and Jinling Hotel
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By analyzing existing cross correlation between Xiandai Investment Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jinling Hotel.
Diversification Opportunities for Xiandai Investment and Jinling Hotel
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Jinling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment 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 Xiandai Investment 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 Xiandai Investment 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 Xiandai Investment i.e., Xiandai Investment and Jinling Hotel go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jinling Hotel
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 1.41 times more return on investment than Jinling Hotel. However, Xiandai Investment is 1.41 times more volatile than Jinling Hotel Corp. It trades about 0.19 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.21 per unit of risk. If you would invest 423.00 in Xiandai Investment Co on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jinling Hotel Corp
Performance |
| Timeline |
| Xiandai Investment |
| Jinling Hotel Corp |
Xiandai Investment and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jinling Hotel
The main advantage of trading using opposite Xiandai Investment and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. China Mobile Limited |
| Jinling Hotel vs. Qingdao Foods Co | Jinling Hotel vs. Hubei Geoway Investment | Jinling Hotel vs. Guangdong Wens Foodstuff | Jinling Hotel vs. Gan Yuan Foods |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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