Correlation Between Jinling Hotel and Suzhou Fushilai
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By analyzing existing cross correlation between Jinling Hotel Corp and Suzhou Fushilai Pharmaceutical, you can compare the effects of market volatilities on Jinling Hotel and Suzhou Fushilai 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 Suzhou Fushilai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Suzhou Fushilai.
Diversification Opportunities for Jinling Hotel and Suzhou Fushilai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Suzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Suzhou Fushilai Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Fushilai Phar 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 Suzhou Fushilai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Fushilai Phar has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Suzhou Fushilai go up and down completely randomly.
Pair Corralation between Jinling Hotel and Suzhou Fushilai
Assuming the 90 days trading horizon Jinling Hotel is expected to generate 1.49 times less return on investment than Suzhou Fushilai. But when comparing it to its historical volatility, Jinling Hotel Corp is 1.35 times less risky than Suzhou Fushilai. It trades about 0.04 of its potential returns per unit of risk. Suzhou Fushilai Pharmaceutical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,122 in Suzhou Fushilai Pharmaceutical on November 2, 2024 and sell it today you would earn a total of 208.00 from holding Suzhou Fushilai Pharmaceutical or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Suzhou Fushilai Pharmaceutical
Performance |
| Timeline |
| Jinling Hotel Corp |
| Suzhou Fushilai Phar |
Jinling Hotel and Suzhou Fushilai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Suzhou Fushilai
The main advantage of trading using opposite Jinling Hotel and Suzhou Fushilai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Suzhou Fushilai 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 Suzhou Fushilai will offset losses from the drop in Suzhou Fushilai'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 |
| Suzhou Fushilai vs. Impulse Qingdao Health | Suzhou Fushilai vs. Humanwell Healthcare Group | Suzhou Fushilai vs. Guangdong Wens Foodstuff | Suzhou Fushilai vs. Shandong Sinoglory Health |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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