Correlation Between China Sports and Jinling Hotel
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By analyzing existing cross correlation between China Sports Industry and Jinling Hotel Corp, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Jinling Hotel.
Diversification Opportunities for China Sports and Jinling Hotel
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jinling is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry 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 China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Jinling Hotel go up and down completely randomly.
Pair Corralation between China Sports and Jinling Hotel
Assuming the 90 days trading horizon China Sports Industry is expected to generate 1.07 times more return on investment than Jinling Hotel. However, China Sports is 1.07 times more volatile than Jinling Hotel Corp. It trades about 0.02 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 791.00 in China Sports Industry on August 26, 2024 and sell it today you would earn a total of 3.00 from holding China Sports Industry or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Jinling Hotel Corp
Performance |
| Timeline |
| China Sports Industry |
| Jinling Hotel Corp |
China Sports and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Jinling Hotel
The main advantage of trading using opposite China Sports and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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