Correlation Between Jinling Hotel and Guangdong Jingyi
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By analyzing existing cross correlation between Jinling Hotel Corp and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jinling Hotel and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Guangdong Jingyi.
Diversification Opportunities for Jinling Hotel and Guangdong Jingyi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jinling Hotel and Guangdong Jingyi
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.14 times less risky than Guangdong Jingyi. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Guangdong Jingyi Metal on October 16, 2024 and sell it today you would lose (118.00) from holding Guangdong Jingyi Metal or give up 15.53% 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. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jinling Hotel Corp |
| Guangdong Jingyi Metal |
Jinling Hotel and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Guangdong Jingyi
The main advantage of trading using opposite Jinling Hotel and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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