Correlation Between Jinling Hotel and Lootom Telcovideo
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By analyzing existing cross correlation between Jinling Hotel Corp and Lootom Telcovideo Network, you can compare the effects of market volatilities on Jinling Hotel and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Lootom Telcovideo.
Diversification Opportunities for Jinling Hotel and Lootom Telcovideo
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Lootom is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Jinling Hotel and Lootom Telcovideo
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Lootom Telcovideo. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.42 times less risky than Lootom Telcovideo. The stock trades about -0.14 of its potential returns per unit of risk. The Lootom Telcovideo Network is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Lootom Telcovideo Network on November 2, 2024 and sell it today you would lose (33.00) from holding Lootom Telcovideo Network or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Jinling Hotel Corp |
| Lootom Telcovideo Network |
Jinling Hotel and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Lootom Telcovideo
The main advantage of trading using opposite Jinling Hotel and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Jinling Hotel vs. Anhui Jianghuai Automobile | Jinling Hotel vs. Jiangsu Xinri E Vehicle | Jinling Hotel vs. Zhengzhou Coal Mining | Jinling Hotel vs. Haima Automobile Group |
| Lootom Telcovideo vs. Eastern Air Logistics | Lootom Telcovideo vs. Shanghai Action Education | Lootom Telcovideo vs. Fuzhou Rockchip Electronics | Lootom Telcovideo vs. SSAW Hotels Resorts |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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