Correlation Between Jinling Hotel and Maoming Petro
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By analyzing existing cross correlation between Jinling Hotel Corp and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Jinling Hotel and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Maoming Petro.
Diversification Opportunities for Jinling Hotel and Maoming Petro
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinling and Maoming is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Maoming Petro go up and down completely randomly.
Pair Corralation between Jinling Hotel and Maoming Petro
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Maoming Petro. In addition to that, Jinling Hotel is 1.24 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.2 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.14 per unit of volatility. If you would invest 382.00 in Maoming Petro Chemical Shihua on October 28, 2024 and sell it today you would lose (19.00) from holding Maoming Petro Chemical Shihua or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Jinling Hotel Corp |
| Maoming Petro Chemical |
Jinling Hotel and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Maoming Petro
The main advantage of trading using opposite Jinling Hotel and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Jinling Hotel vs. China Everbright Bank | Jinling Hotel vs. Cabio Biotech Wuhan | Jinling Hotel vs. HUAQIN TECHNOLOGY LTD | Jinling Hotel vs. Shenwu Energy Saving |
| Maoming Petro vs. Sanbo Hospital Management | Maoming Petro vs. Shenzhen AV Display Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Youngy Health 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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