Correlation Between Jinling Hotel and Fujian Newland
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By analyzing existing cross correlation between Jinling Hotel Corp and Fujian Newland Computer, you can compare the effects of market volatilities on Jinling Hotel and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Fujian Newland.
Diversification Opportunities for Jinling Hotel and Fujian Newland
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Fujian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Fujian Newland go up and down completely randomly.
Pair Corralation between Jinling Hotel and Fujian Newland
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.65 times more return on investment than Fujian Newland. However, Jinling Hotel Corp is 1.54 times less risky than Fujian Newland. It trades about 0.31 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.0 per unit of risk. If you would invest 695.00 in Jinling Hotel Corp on September 15, 2024 and sell it today you would earn a total of 103.00 from holding Jinling Hotel Corp or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Fujian Newland Computer
Performance |
| Timeline |
| Jinling Hotel Corp |
| Fujian Newland Computer |
Jinling Hotel and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Fujian Newland
The main advantage of trading using opposite Jinling Hotel and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Jinling Hotel vs. Runjian Communication Co | Jinling Hotel vs. Shanghai Yanpu Metal | Jinling Hotel vs. Sunwave Communications Co | Jinling Hotel vs. Tongling Nonferrous Metals |
| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
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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