Correlation Between JINS HOLDINGS and DATANG INTL
Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and DATANG INTL 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 JINS HOLDINGS and DATANG INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JINS HOLDINGS INC and DATANG INTL POW, you can compare the effects of market volatilities on JINS HOLDINGS and DATANG INTL 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 JINS HOLDINGS with a short position of DATANG INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and DATANG INTL.
Diversification Opportunities for JINS HOLDINGS and DATANG INTL
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JINS and DATANG is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and DATANG INTL POW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATANG INTL POW and JINS HOLDINGS 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 JINS HOLDINGS INC are associated (or correlated) with DATANG INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATANG INTL POW has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and DATANG INTL go up and down completely randomly.
Pair Corralation between JINS HOLDINGS and DATANG INTL
Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 1.51 times more return on investment than DATANG INTL. However, JINS HOLDINGS is 1.51 times more volatile than DATANG INTL POW. It trades about 0.05 of its potential returns per unit of risk. DATANG INTL POW is currently generating about 0.05 per unit of risk. If you would invest 1,452 in JINS HOLDINGS INC on September 12, 2024 and sell it today you would earn a total of 2,468 from holding JINS HOLDINGS INC or generate 169.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINS HOLDINGS INC vs. DATANG INTL POW
Performance |
| Timeline |
| JINS HOLDINGS INC |
| DATANG INTL POW |
JINS HOLDINGS and DATANG INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINS HOLDINGS and DATANG INTL
The main advantage of trading using opposite JINS HOLDINGS and DATANG INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINS HOLDINGS position performs unexpectedly, DATANG INTL 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 DATANG INTL will offset losses from the drop in DATANG INTL's long position.| JINS HOLDINGS vs. Goodyear Tire Rubber | JINS HOLDINGS vs. VULCAN MATERIALS | JINS HOLDINGS vs. TSOGO SUN GAMING | JINS HOLDINGS vs. Scientific Games |
| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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