Correlation Between Yunnan Xiyi and Jinling Hotel
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Jinling Hotel Corp, you can compare the effects of market volatilities on Yunnan Xiyi 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 Yunnan Xiyi with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Jinling Hotel.
Diversification Opportunities for Yunnan Xiyi and Jinling Hotel
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Jinling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial 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 Yunnan Xiyi 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 Yunnan Xiyi Industrial 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 Yunnan Xiyi i.e., Yunnan Xiyi and Jinling Hotel go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Jinling Hotel
Assuming the 90 days trading horizon Yunnan Xiyi is expected to generate 1.18 times less return on investment than Jinling Hotel. In addition to that, Yunnan Xiyi is 1.43 times more volatile than Jinling Hotel Corp. It trades about 0.09 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.16 per unit of volatility. If you would invest 677.00 in Jinling Hotel Corp on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Jinling Hotel Corp or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Jinling Hotel Corp
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Jinling Hotel Corp |
Yunnan Xiyi and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Jinling Hotel
The main advantage of trading using opposite Yunnan Xiyi and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi 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.| Yunnan Xiyi vs. China Publishing Media | Yunnan Xiyi vs. Sichuan Hebang Biotechnology | Yunnan Xiyi vs. Zhejiang Publishing Media | Yunnan Xiyi vs. Jiangsu GDK Biotechnology |
| Jinling Hotel vs. Cultural Investment Holdings | Jinling Hotel vs. Gome Telecom Equipment | Jinling Hotel vs. Bus Online Co | Jinling Hotel vs. Holitech Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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