Correlation Between INKON Life and Shanghai Jinfeng
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By analyzing existing cross correlation between INKON Life Technology and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on INKON Life and Shanghai Jinfeng 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 INKON Life with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Shanghai Jinfeng.
Diversification Opportunities for INKON Life and Shanghai Jinfeng
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INKON and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and INKON Life 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 INKON Life Technology are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of INKON Life i.e., INKON Life and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between INKON Life and Shanghai Jinfeng
Assuming the 90 days trading horizon INKON Life Technology is expected to generate 1.55 times more return on investment than Shanghai Jinfeng. However, INKON Life is 1.55 times more volatile than Shanghai Jinfeng Wine. It trades about 0.08 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.08 per unit of risk. If you would invest 738.00 in INKON Life Technology on September 12, 2024 and sell it today you would earn a total of 267.00 from holding INKON Life Technology or generate 36.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INKON Life Technology vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| INKON Life Technology |
| Shanghai Jinfeng Wine |
INKON Life and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INKON Life and Shanghai Jinfeng
The main advantage of trading using opposite INKON Life and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| INKON Life vs. Pengxin International Mining | INKON Life vs. Dongfeng Automobile Co | INKON Life vs. Wuhan Yangtze Communication | INKON Life vs. Guangzhou Dongfang Hotel |
| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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