Correlation Between Guangdong Wens and Jinling Hotel
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Jinling Hotel Corp, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Jinling Hotel.
Diversification Opportunities for Guangdong Wens and Jinling Hotel
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Jinling is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff 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 Guangdong Wens 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 Guangdong Wens Foodstuff 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 Guangdong Wens i.e., Guangdong Wens and Jinling Hotel go up and down completely randomly.
Pair Corralation between Guangdong Wens and Jinling Hotel
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Jinling Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.46 times less risky than Jinling Hotel. The stock trades about -0.24 of its potential returns per unit of risk. The Jinling Hotel Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Jinling Hotel Corp
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Jinling Hotel Corp |
Guangdong Wens and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Jinling Hotel
The main advantage of trading using opposite Guangdong Wens and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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