Correlation Between Anhui Gujing and Jinling Hotel
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By analyzing existing cross correlation between Anhui Gujing Distillery and Jinling Hotel Corp, you can compare the effects of market volatilities on Anhui Gujing 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 Anhui Gujing with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jinling Hotel.
Diversification Opportunities for Anhui Gujing and Jinling Hotel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Jinling is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery 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 Anhui Gujing 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 Anhui Gujing Distillery 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 Anhui Gujing i.e., Anhui Gujing and Jinling Hotel go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jinling Hotel
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Jinling Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.14 times less risky than Jinling Hotel. The stock trades about -0.26 of its potential returns per unit of risk. The Jinling Hotel Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Jinling Hotel Corp on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Jinling Hotel Corp or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Jinling Hotel Corp
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Jinling Hotel Corp |
Anhui Gujing and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Jinling Hotel
The main advantage of trading using opposite Anhui Gujing and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing 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.| Anhui Gujing vs. Chengtun Mining Group | Anhui Gujing vs. Ye Chiu Metal | Anhui Gujing vs. Shenzhen Noposion Agrochemicals | Anhui Gujing vs. Shandong Mining Machinery |
| Jinling Hotel vs. Lutian Machinery Co | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Bank of China | Jinling Hotel vs. Gansu Jiu Steel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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