Correlation Between Jinling Hotel and Shandong Sino
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By analyzing existing cross correlation between Jinling Hotel Corp and Shandong Sino Agri United, you can compare the effects of market volatilities on Jinling Hotel and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Shandong Sino.
Diversification Opportunities for Jinling Hotel and Shandong Sino
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Shandong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Shandong Sino go up and down completely randomly.
Pair Corralation between Jinling Hotel and Shandong Sino
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.81 times more return on investment than Shandong Sino. However, Jinling Hotel Corp is 1.24 times less risky than Shandong Sino. It trades about -0.03 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about -0.03 per unit of risk. If you would invest 1,009 in Jinling Hotel Corp on October 9, 2024 and sell it today you would lose (359.00) from holding Jinling Hotel Corp or give up 35.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Shandong Sino Agri United
Performance |
| Timeline |
| Jinling Hotel Corp |
| Shandong Sino Agri |
Jinling Hotel and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Shandong Sino
The main advantage of trading using opposite Jinling Hotel and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. Kweichow Moutai Co | Jinling Hotel vs. Agricultural Bank of | Jinling Hotel vs. China Mobile Limited |
| Shandong Sino vs. Sinocat Environmental Technology | Shandong Sino vs. Gansu Jiu Steel | Shandong Sino vs. Qiaoyin Environmental Tech | Shandong Sino vs. Hangzhou Guotai Environmental |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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