Correlation Between Jinling Hotel and Nanhua Bio
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By analyzing existing cross correlation between Jinling Hotel Corp and Nanhua Bio Medicine, you can compare the effects of market volatilities on Jinling Hotel and Nanhua Bio 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 Jinling Hotel with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Nanhua Bio.
Diversification Opportunities for Jinling Hotel and Nanhua Bio
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Nanhua is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Jinling Hotel 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 Jinling Hotel Corp are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Nanhua Bio go up and down completely randomly.
Pair Corralation between Jinling Hotel and Nanhua Bio
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Nanhua Bio. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.53 times less risky than Nanhua Bio. The stock trades about -0.12 of its potential returns per unit of risk. The Nanhua Bio Medicine is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 835.00 in Nanhua Bio Medicine on November 1, 2024 and sell it today you would earn a total of 50.00 from holding Nanhua Bio Medicine or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Jinling Hotel Corp |
| Nanhua Bio Medicine |
Jinling Hotel and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Nanhua Bio
The main advantage of trading using opposite Jinling Hotel and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Jinling Hotel vs. Glodon Software Co | Jinling Hotel vs. Pengxin International Mining | Jinling Hotel vs. Soochow Suzhou Industrial | Jinling Hotel vs. Fujian Boss Software |
| Nanhua Bio vs. Senci Electric Machinery | Nanhua Bio vs. Shanghai Yanpu Metal | Nanhua Bio vs. JCHX Mining Management | Nanhua Bio vs. Guangzhou KDT Machinery |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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