Correlation Between Jinling Hotel and Zhejiang Dahua
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By analyzing existing cross correlation between Jinling Hotel Corp and Zhejiang Dahua Technology, you can compare the effects of market volatilities on Jinling Hotel and Zhejiang Dahua 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 Zhejiang Dahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Zhejiang Dahua.
Diversification Opportunities for Jinling Hotel and Zhejiang Dahua
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Zhejiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Zhejiang Dahua Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Dahua Technology 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 Zhejiang Dahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Dahua Technology has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Zhejiang Dahua go up and down completely randomly.
Pair Corralation between Jinling Hotel and Zhejiang Dahua
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Zhejiang Dahua. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.22 times less risky than Zhejiang Dahua. The stock trades about -0.03 of its potential returns per unit of risk. The Zhejiang Dahua Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,208 in Zhejiang Dahua Technology on October 16, 2024 and sell it today you would earn a total of 247.00 from holding Zhejiang Dahua Technology or generate 20.45% 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. Zhejiang Dahua Technology
Performance |
| Timeline |
| Jinling Hotel Corp |
| Zhejiang Dahua Technology |
Jinling Hotel and Zhejiang Dahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Zhejiang Dahua
The main advantage of trading using opposite Jinling Hotel and Zhejiang Dahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Zhejiang Dahua 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 Zhejiang Dahua will offset losses from the drop in Zhejiang Dahua'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 |
| Zhejiang Dahua vs. Will Semiconductor Co | Zhejiang Dahua vs. Eastroc Beverage Group | Zhejiang Dahua vs. Jinling Hotel Corp | Zhejiang Dahua vs. Nexchip Semiconductor Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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