Correlation Between Jinling Hotel and Emdoor Information
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By analyzing existing cross correlation between Jinling Hotel Corp and Emdoor Information Co, you can compare the effects of market volatilities on Jinling Hotel and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Emdoor Information.
Diversification Opportunities for Jinling Hotel and Emdoor Information
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinling and Emdoor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Emdoor Information go up and down completely randomly.
Pair Corralation between Jinling Hotel and Emdoor Information
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Emdoor Information. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 2.2 times less risky than Emdoor Information. The stock trades about -0.09 of its potential returns per unit of risk. The Emdoor Information Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5,152 in Emdoor Information Co on October 30, 2024 and sell it today you would lose (287.00) from holding Emdoor Information Co or give up 5.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Emdoor Information Co
Performance |
| Timeline |
| Jinling Hotel Corp |
| Emdoor Information |
Jinling Hotel and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Emdoor Information
The main advantage of trading using opposite Jinling Hotel and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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