Correlation Between Jinling Hotel and Nanjing Putian
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By analyzing existing cross correlation between Jinling Hotel Corp and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Jinling Hotel and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Nanjing Putian.
Diversification Opportunities for Jinling Hotel and Nanjing Putian
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Nanjing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Nanjing Putian go up and down completely randomly.
Pair Corralation between Jinling Hotel and Nanjing Putian
Assuming the 90 days trading horizon Jinling Hotel is expected to generate 1.91 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Jinling Hotel Corp is 1.92 times less risky than Nanjing Putian. It trades about 0.12 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Nanjing Putian Telecommunications on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Nanjing Putian Telecommunications or generate 9.75% 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. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Jinling Hotel Corp |
| Nanjing Putian Telec |
Jinling Hotel and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Nanjing Putian
The main advantage of trading using opposite Jinling Hotel and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. China Construction Bank |
| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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