Correlation Between Shandong Sino and Jinling Hotel
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By analyzing existing cross correlation between Shandong Sino Agri United and Jinling Hotel Corp, you can compare the effects of market volatilities on Shandong Sino 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 Shandong Sino with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sino and Jinling Hotel.
Diversification Opportunities for Shandong Sino and Jinling Hotel
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Jinling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sino Agri United 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 Shandong Sino 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 Shandong Sino Agri United 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 Shandong Sino i.e., Shandong Sino and Jinling Hotel go up and down completely randomly.
Pair Corralation between Shandong Sino and Jinling Hotel
Assuming the 90 days trading horizon Shandong Sino is expected to generate 1.14 times less return on investment than Jinling Hotel. In addition to that, Shandong Sino is 2.47 times more volatile than Jinling Hotel Corp. It trades about 0.07 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.21 per unit of volatility. If you would invest 716.00 in Jinling Hotel Corp on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Jinling Hotel Corp or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sino Agri United vs. Jinling Hotel Corp
Performance |
| Timeline |
| Shandong Sino Agri |
| Jinling Hotel Corp |
Shandong Sino and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sino and Jinling Hotel
The main advantage of trading using opposite Shandong Sino and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sino 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.| Shandong Sino vs. Bloomage Biotechnology Corp | Shandong Sino vs. Ningbo MedicalSystem Biotechnology | Shandong Sino vs. Shenzhen Bioeasy Biotechnology | Shandong Sino vs. Postal Savings Bank |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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