Correlation Between Jinling Hotel and Chengdu Xinzhu
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By analyzing existing cross correlation between Jinling Hotel Corp and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Jinling Hotel and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Chengdu Xinzhu.
Diversification Opportunities for Jinling Hotel and Chengdu Xinzhu
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Chengdu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Jinling Hotel and Chengdu Xinzhu
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Chengdu Xinzhu. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 2.17 times less risky than Chengdu Xinzhu. The stock trades about -0.11 of its potential returns per unit of risk. The Chengdu Xinzhu RoadBridge is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Chengdu Xinzhu RoadBridge on October 22, 2024 and sell it today you would earn a total of 2.00 from holding Chengdu Xinzhu RoadBridge or generate 0.38% 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. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Jinling Hotel Corp |
| Chengdu Xinzhu RoadBridge |
Jinling Hotel and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Chengdu Xinzhu
The main advantage of trading using opposite Jinling Hotel and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Jinling Hotel vs. Jiangsu Broadcasting Cable | Jinling Hotel vs. Anhui Transport Consulting | Jinling Hotel vs. Zhongshan Broad Ocean Motor | Jinling Hotel vs. Ping An Insurance |
| Chengdu Xinzhu vs. Jinling Hotel Corp | Chengdu Xinzhu vs. Zhejiang Construction Investment | Chengdu Xinzhu vs. Youngy Health Co | Chengdu Xinzhu vs. Xiandai Investment Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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