Correlation Between Unisplendour Corp and Jinling Hotel
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By analyzing existing cross correlation between Unisplendour Corp and Jinling Hotel Corp, you can compare the effects of market volatilities on Unisplendour Corp 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 Unisplendour Corp with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisplendour Corp and Jinling Hotel.
Diversification Opportunities for Unisplendour Corp and Jinling Hotel
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Unisplendour and Jinling is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Unisplendour Corp 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 Unisplendour Corp 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 Unisplendour Corp 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 Unisplendour Corp i.e., Unisplendour Corp and Jinling Hotel go up and down completely randomly.
Pair Corralation between Unisplendour Corp and Jinling Hotel
Assuming the 90 days trading horizon Unisplendour Corp is expected to generate 1.4 times more return on investment than Jinling Hotel. However, Unisplendour Corp is 1.4 times more volatile than Jinling Hotel Corp. It trades about 0.1 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.04 per unit of risk. If you would invest 1,930 in Unisplendour Corp on November 2, 2024 and sell it today you would earn a total of 588.00 from holding Unisplendour Corp or generate 30.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisplendour Corp vs. Jinling Hotel Corp
Performance |
| Timeline |
| Unisplendour Corp |
| Jinling Hotel Corp |
Unisplendour Corp and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisplendour Corp and Jinling Hotel
The main advantage of trading using opposite Unisplendour Corp and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisplendour Corp 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.| Unisplendour Corp vs. Easyhome New Retail | Unisplendour Corp vs. Shaanxi Meineng Clean | Unisplendour Corp vs. Shenyang Huitian Thermal | Unisplendour Corp vs. Ningbo Fangzheng Automobile |
| Jinling Hotel vs. Anhui Jianghuai Automobile | Jinling Hotel vs. Jiangsu Xinri E Vehicle | Jinling Hotel vs. Zhengzhou Coal Mining | Jinling Hotel vs. Haima Automobile Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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