Correlation Between Xiangtan Electrochemical and Jinling Hotel
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Jinling Hotel Corp, you can compare the effects of market volatilities on Xiangtan Electrochemical 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 Xiangtan Electrochemical with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Jinling Hotel.
Diversification Opportunities for Xiangtan Electrochemical and Jinling Hotel
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangtan and Jinling is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien 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 Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific 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 Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Jinling Hotel go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Jinling Hotel
Assuming the 90 days trading horizon Xiangtan Electrochemical Scientific is expected to generate 0.76 times more return on investment than Jinling Hotel. However, Xiangtan Electrochemical Scientific is 1.32 times less risky than Jinling Hotel. It trades about -0.38 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.46 per unit of risk. If you would invest 1,122 in Xiangtan Electrochemical Scientific on October 14, 2024 and sell it today you would lose (148.00) from holding Xiangtan Electrochemical Scientific or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Jinling Hotel Corp
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Jinling Hotel Corp |
Xiangtan Electrochemical and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Jinling Hotel
The main advantage of trading using opposite Xiangtan Electrochemical and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical 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.| Xiangtan Electrochemical vs. Aluminum Corp of | Xiangtan Electrochemical vs. Rising Nonferrous Metals | Xiangtan Electrochemical vs. Success Electronics | Xiangtan Electrochemical vs. Jiaozuo Wanfang Aluminum |
| Jinling Hotel vs. Zhejiang Yinlun Machinery | Jinling Hotel vs. Anhui Huilong Agricultural | Jinling Hotel vs. Runjian Communication Co | Jinling Hotel vs. Qijing Machinery |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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