Correlation Between King Strong and Jinling Hotel
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By analyzing existing cross correlation between King Strong New Material and Jinling Hotel Corp, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Jinling Hotel.
Diversification Opportunities for King Strong and Jinling Hotel
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Jinling is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Jinling Hotel go up and down completely randomly.
Pair Corralation between King Strong and Jinling Hotel
Assuming the 90 days trading horizon King Strong New Material is expected to generate 1.35 times more return on investment than Jinling Hotel. However, King Strong is 1.35 times more volatile than Jinling Hotel Corp. It trades about 0.03 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.01 per unit of risk. If you would invest 1,950 in King Strong New Material on September 4, 2024 and sell it today you would earn a total of 452.00 from holding King Strong New Material or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Jinling Hotel Corp
Performance |
| Timeline |
| King Strong New |
| Jinling Hotel Corp |
King Strong and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Jinling Hotel
The main advantage of trading using opposite King Strong and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Anhui Deli Household | King Strong vs. Jiujiang Shanshui Technology | King Strong vs. Sunwave Communications Co | King Strong vs. China Satellite Communications |
| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. China Construction Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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