Correlation Between Pengxin International and Jinling Hotel
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By analyzing existing cross correlation between Pengxin International Mining and Jinling Hotel Corp, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Jinling Hotel.
Diversification Opportunities for Pengxin International and Jinling Hotel
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Jinling is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining 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 Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and Jinling Hotel go up and down completely randomly.
Pair Corralation between Pengxin International and Jinling Hotel
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.95 times more return on investment than Jinling Hotel. However, Pengxin International is 1.95 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 -0.09 per unit of risk. If you would invest 316.00 in Pengxin International Mining on October 30, 2024 and sell it today you would lose (1.00) from holding Pengxin International Mining or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Jinling Hotel Corp
Performance |
| Timeline |
| Pengxin International |
| Jinling Hotel Corp |
Pengxin International and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Jinling Hotel
The main advantage of trading using opposite Pengxin International and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.| Pengxin International vs. Beijing Kaiwen Education | Pengxin International vs. COL Digital Publishing | Pengxin International vs. Allied Machinery Co | Pengxin International vs. Qijing Machinery |
| Jinling Hotel vs. Guangzhou Haige Communications | Jinling Hotel vs. Beijing Jiaman Dress | Jinling Hotel vs. GRINM Semiconductor Materials | Jinling Hotel vs. Xinjiang Communications Construction |
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.
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