Correlation Between Guizhou Chanhen and Jinling Hotel
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Jinling Hotel Corp, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Jinling Hotel.
Diversification Opportunities for Guizhou Chanhen and Jinling Hotel
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guizhou and Jinling is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Jinling Hotel go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Jinling Hotel
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Jinling Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou Chanhen Chemical is 1.06 times less risky than Jinling Hotel. The stock trades about -0.23 of its potential returns per unit of risk. The Jinling Hotel Corp is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Jinling Hotel Corp on October 28, 2024 and sell it today you would lose (63.00) from holding Jinling Hotel Corp or give up 8.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Jinling Hotel Corp
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Jinling Hotel Corp |
Guizhou Chanhen and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Jinling Hotel
The main advantage of trading using opposite Guizhou Chanhen and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Linzhou Heavy Machinery | Guizhou Chanhen vs. Tjk Machinery Tianjin | Guizhou Chanhen vs. Shanghai Construction Group | Guizhou Chanhen vs. Hubei Geoway Investment |
| Jinling Hotel vs. China Everbright Bank | Jinling Hotel vs. Cabio Biotech Wuhan | Jinling Hotel vs. HUAQIN TECHNOLOGY LTD | Jinling Hotel vs. Shenwu Energy Saving |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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