Correlation Between Ningbo Jianan and Jinling Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Jianan Electronics and Jinling Hotel Corp, you can compare the effects of market volatilities on Ningbo Jianan 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 Ningbo Jianan with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Jinling Hotel.
Diversification Opportunities for Ningbo Jianan and Jinling Hotel
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Jinling is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics 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 Ningbo Jianan 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 Ningbo Jianan Electronics 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 Ningbo Jianan i.e., Ningbo Jianan and Jinling Hotel go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Jinling Hotel
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.58 times more return on investment than Jinling Hotel. However, Ningbo Jianan is 1.58 times more volatile than Jinling Hotel Corp. It trades about 0.04 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.02 per unit of risk. If you would invest 1,530 in Ningbo Jianan Electronics on August 25, 2024 and sell it today you would earn a total of 720.00 from holding Ningbo Jianan Electronics or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Jinling Hotel Corp
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Jinling Hotel Corp |
Ningbo Jianan and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Jinling Hotel
The main advantage of trading using opposite Ningbo Jianan and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan 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.| Ningbo Jianan vs. CSSC Offshore Marine | Ningbo Jianan vs. Shanghai Yaoji Playing | Ningbo Jianan vs. Chongqing Brewery Co | Ningbo Jianan vs. Pengxin International Mining |
| Jinling Hotel vs. Ningbo Fangzheng Automobile | Jinling Hotel vs. Road Environment Technology | Jinling Hotel vs. Glodon Software Co | Jinling Hotel vs. Linewell Software 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |