Correlation Between Gansu Yasheng and Jinling Hotel
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Jinling Hotel Corp, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Jinling Hotel.
Diversification Opportunities for Gansu Yasheng and Jinling Hotel
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Jinling is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial 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 Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Jinling Hotel go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Jinling Hotel
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 1.11 times more return on investment than Jinling Hotel. However, Gansu Yasheng is 1.11 times more volatile than Jinling Hotel Corp. It trades about 0.15 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.16 per unit of risk. If you would invest 283.00 in Gansu Yasheng Industrial on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Gansu Yasheng Industrial or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Jinling Hotel Corp
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Jinling Hotel Corp |
Gansu Yasheng and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Jinling Hotel
The main advantage of trading using opposite Gansu Yasheng and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Hunan TV Broadcast | Gansu Yasheng vs. Zhejiang Yongjin Metal | Gansu Yasheng vs. RoadMain T Co | Gansu Yasheng vs. Hubeiyichang Transportation Group |
| Jinling Hotel vs. Cultural Investment Holdings | Jinling Hotel vs. Gome Telecom Equipment | Jinling Hotel vs. Bus Online Co | Jinling Hotel vs. Holitech Technology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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