Correlation Between Kuang Chi and Jinling Hotel
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By analyzing existing cross correlation between Kuang Chi Technologies and Jinling Hotel Corp, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Jinling Hotel.
Diversification Opportunities for Kuang Chi and Jinling Hotel
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuang and Jinling is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies 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 Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Jinling Hotel go up and down completely randomly.
Pair Corralation between Kuang Chi and Jinling Hotel
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Jinling Hotel. In addition to that, Kuang Chi is 1.72 times more volatile than Jinling Hotel Corp. It trades about -0.13 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.31 per unit of volatility. If you would invest 695.00 in Jinling Hotel Corp on September 15, 2024 and sell it today you would earn a total of 103.00 from holding Jinling Hotel Corp or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Jinling Hotel Corp
Performance |
| Timeline |
| Kuang Chi Technologies |
| Jinling Hotel Corp |
Kuang Chi and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Jinling Hotel
The main advantage of trading using opposite Kuang Chi and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
| Jinling Hotel vs. Runjian Communication Co | Jinling Hotel vs. Shanghai Yanpu Metal | Jinling Hotel vs. Sunwave Communications Co | Jinling Hotel vs. Tongling Nonferrous Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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