Correlation Between Jinling Hotel and Marssenger Kitchenware
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By analyzing existing cross correlation between Jinling Hotel Corp and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Jinling Hotel and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Marssenger Kitchenware.
Diversification Opportunities for Jinling Hotel and Marssenger Kitchenware
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Marssenger is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Jinling Hotel and Marssenger Kitchenware
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.72 times more return on investment than Marssenger Kitchenware. However, Jinling Hotel Corp is 1.4 times less risky than Marssenger Kitchenware. It trades about -0.03 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.04 per unit of risk. If you would invest 996.00 in Jinling Hotel Corp on October 16, 2024 and sell it today you would lose (353.00) from holding Jinling Hotel Corp or give up 35.44% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Jinling Hotel Corp |
| Marssenger Kitchenware |
Jinling Hotel and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Marssenger Kitchenware
The main advantage of trading using opposite Jinling Hotel and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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