Correlation Between Hubei Geoway and Jinling Hotel
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By analyzing existing cross correlation between Hubei Geoway Investment and Jinling Hotel Corp, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Jinling Hotel.
Diversification Opportunities for Hubei Geoway and Jinling Hotel
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Jinling is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment 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 Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Jinling Hotel go up and down completely randomly.
Pair Corralation between Hubei Geoway and Jinling Hotel
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.5 times more return on investment than Jinling Hotel. However, Hubei Geoway is 1.5 times more volatile than Jinling Hotel Corp. It trades about 0.16 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.21 per unit of risk. If you would invest 157.00 in Hubei Geoway Investment on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Hubei Geoway Investment or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Jinling Hotel Corp
Performance |
| Timeline |
| Hubei Geoway Investment |
| Jinling Hotel Corp |
Hubei Geoway and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Jinling Hotel
The main advantage of trading using opposite Hubei Geoway and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Jinling Hotel vs. Qingdao Foods Co | Jinling Hotel vs. Hubei Geoway Investment | Jinling Hotel vs. Guangdong Wens Foodstuff | Jinling Hotel vs. Gan Yuan Foods |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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