Correlation Between Jinling Hotel and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Jinling Hotel Corp and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Jinling Hotel and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Jinling Hotel and Zhengzhou Qianweiyangchu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Zhengzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Jinling Hotel and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.88 times more return on investment than Zhengzhou Qianweiyangchu. However, Jinling Hotel Corp is 1.14 times less risky than Zhengzhou Qianweiyangchu. It trades about -0.03 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.06 per unit of risk. If you would invest 996.00 in Jinling Hotel Corp on October 16, 2024 and sell it today you would lose (353.00) from holding Jinling Hotel Corp or give up 35.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Jinling Hotel Corp |
| Zhengzhou Qianweiyangchu |
Jinling Hotel and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Jinling Hotel and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
| Zhengzhou Qianweiyangchu vs. Sportsoul Co Ltd | Zhengzhou Qianweiyangchu vs. Hangzhou Minsheng Healthcare | Zhengzhou Qianweiyangchu vs. Youngy Health Co | Zhengzhou Qianweiyangchu vs. China Sports Industry |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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