Correlation Between Gan Yuan and Jinling Hotel
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By analyzing existing cross correlation between Gan Yuan Foods and Jinling Hotel Corp, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Jinling Hotel.
Diversification Opportunities for Gan Yuan and Jinling Hotel
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Jinling is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods 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 Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Jinling Hotel go up and down completely randomly.
Pair Corralation between Gan Yuan and Jinling Hotel
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.0 times more return on investment than Jinling Hotel. However, Gan Yuan is 1.0 times more volatile than Jinling Hotel Corp. It trades about 0.27 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.21 per unit of risk. If you would invest 7,315 in Gan Yuan Foods on September 13, 2024 and sell it today you would earn a total of 878.00 from holding Gan Yuan Foods or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Jinling Hotel Corp
Performance |
| Timeline |
| Gan Yuan Foods |
| Jinling Hotel Corp |
Gan Yuan and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Jinling Hotel
The main advantage of trading using opposite Gan Yuan and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Linewell Software Co | Gan Yuan vs. Glodon Software Co | Gan Yuan vs. Gem Year Industrial Co | Gan Yuan vs. Guangdong Jingyi Metal |
| Jinling Hotel vs. Qingdao Foods Co | Jinling Hotel vs. Hubei Geoway Investment | Jinling Hotel vs. Guangdong Wens Foodstuff | Jinling Hotel vs. Gan Yuan Foods |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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