Correlation Between Jinling Hotel and Beijing Venustech
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By analyzing existing cross correlation between Jinling Hotel Corp and Beijing Venustech, you can compare the effects of market volatilities on Jinling Hotel and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Beijing Venustech.
Diversification Opportunities for Jinling Hotel and Beijing Venustech
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Beijing Venustech go up and down completely randomly.
Pair Corralation between Jinling Hotel and Beijing Venustech
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.72 times more return on investment than Beijing Venustech. However, Jinling Hotel Corp is 1.4 times less risky than Beijing Venustech. It trades about 0.16 of its potential returns per unit of risk. Beijing Venustech is currently generating about 0.04 per unit of risk. If you would invest 677.00 in Jinling Hotel Corp on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Jinling Hotel Corp or generate 7.39% 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. Beijing Venustech
Performance |
| Timeline |
| Jinling Hotel Corp |
| Beijing Venustech |
Jinling Hotel and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Beijing Venustech
The main advantage of trading using opposite Jinling Hotel and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| Jinling Hotel vs. Cultural Investment Holdings | Jinling Hotel vs. Gome Telecom Equipment | Jinling Hotel vs. Bus Online Co | Jinling Hotel vs. Holitech Technology Co |
| Beijing Venustech vs. Xiandai Investment Co | Beijing Venustech vs. TongFu Microelectronics Co | Beijing Venustech vs. Aurora Optoelectronics Co | Beijing Venustech vs. Chengdu Xingrong Investment |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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