Correlation Between Chenzhou Jingui and Jinling Hotel
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Jinling Hotel Corp, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Jinling Hotel.
Diversification Opportunities for Chenzhou Jingui and Jinling Hotel
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chenzhou and Jinling is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver 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 Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Jinling Hotel go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Jinling Hotel
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.1 times more return on investment than Jinling Hotel. However, Chenzhou Jingui is 1.1 times more volatile than Jinling Hotel Corp. It trades about 0.13 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.11 per unit of risk. If you would invest 335.00 in Chenzhou Jingui Silver on November 6, 2024 and sell it today you would earn a total of 11.00 from holding Chenzhou Jingui Silver or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Jinling Hotel Corp
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Jinling Hotel Corp |
Chenzhou Jingui and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Jinling Hotel
The main advantage of trading using opposite Chenzhou Jingui and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.| Chenzhou Jingui vs. Qijing Machinery | Chenzhou Jingui vs. Dareway Software Co | Chenzhou Jingui vs. Sinomach General Machinery | Chenzhou Jingui vs. Linzhou Heavy Machinery |
| Jinling Hotel vs. Guocheng Mining Co | Jinling Hotel vs. Jinhui Mining Co | Jinling Hotel vs. Zijin Mining Group | Jinling Hotel vs. Liaoning Xinde New |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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