Correlation Between Dhc Software and Jinling Hotel
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By analyzing existing cross correlation between Dhc Software Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Dhc Software 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 Dhc Software with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dhc Software and Jinling Hotel.
Diversification Opportunities for Dhc Software and Jinling Hotel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dhc and Jinling is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dhc Software 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 Dhc Software 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 Dhc Software 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 Dhc Software i.e., Dhc Software and Jinling Hotel go up and down completely randomly.
Pair Corralation between Dhc Software and Jinling Hotel
Assuming the 90 days trading horizon Dhc Software Co is expected to generate 1.16 times more return on investment than Jinling Hotel. However, Dhc Software is 1.16 times more volatile than Jinling Hotel Corp. It trades about -0.2 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.34 per unit of risk. If you would invest 801.00 in Dhc Software Co on October 17, 2024 and sell it today you would lose (101.00) from holding Dhc Software Co or give up 12.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dhc Software Co vs. Jinling Hotel Corp
Performance |
| Timeline |
| Dhc Software |
| Jinling Hotel Corp |
Dhc Software and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dhc Software and Jinling Hotel
The main advantage of trading using opposite Dhc Software and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dhc Software 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.| Dhc Software vs. Xinjiang Baodi Mining | Dhc Software vs. Suzhou Industrial Park | Dhc Software vs. Jiajia Food Group | Dhc Software vs. Rising Nonferrous Metals |
| Jinling Hotel vs. Dhc Software Co | Jinling Hotel vs. Montage Technology Co | Jinling Hotel vs. Kuang Chi Technologies | Jinling Hotel vs. Hainan Airlines 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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