Correlation Between Les Enphants and Jinli Group
Can any of the company-specific risk be diversified away by investing in both Les Enphants and Jinli Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Les Enphants and Jinli Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Les Enphants Co and Jinli Group Holdings, you can compare the effects of market volatilities on Les Enphants and Jinli Group 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 Les Enphants with a short position of Jinli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Les Enphants and Jinli Group.
Diversification Opportunities for Les Enphants and Jinli Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Les and Jinli is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Les Enphants Co and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings and Les Enphants 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 Les Enphants Co are associated (or correlated) with Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of Les Enphants i.e., Les Enphants and Jinli Group go up and down completely randomly.
Pair Corralation between Les Enphants and Jinli Group
Assuming the 90 days trading horizon Les Enphants is expected to generate 2.73 times less return on investment than Jinli Group. But when comparing it to its historical volatility, Les Enphants Co is 1.42 times less risky than Jinli Group. It trades about 0.14 of its potential returns per unit of risk. Jinli Group Holdings is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Jinli Group Holdings on November 28, 2024 and sell it today you would earn a total of 70.00 from holding Jinli Group Holdings or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Les Enphants Co vs. Jinli Group Holdings
Performance |
| Timeline |
| Les Enphants |
| Jinli Group Holdings |
Les Enphants and Jinli Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Les Enphants and Jinli Group
The main advantage of trading using opposite Les Enphants and Jinli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Les Enphants position performs unexpectedly, Jinli Group 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 Jinli Group will offset losses from the drop in Jinli Group's long position.| Les Enphants vs. Far Eastern Department | Les Enphants vs. Shin Shin Co | Les Enphants vs. First Hotel Co | Les Enphants vs. Hung Sheng Construction |
| Jinli Group vs. Shui Mu International Co | Jinli Group vs. Les Enphants Co | Jinli Group vs. Victory New Materials | Jinli Group vs. Shinih Enterprise Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |