Correlation Between Jinling Hotel and Beijing Jiaman
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By analyzing existing cross correlation between Jinling Hotel Corp and Beijing Jiaman Dress, you can compare the effects of market volatilities on Jinling Hotel and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Beijing Jiaman.
Diversification Opportunities for Jinling Hotel and Beijing Jiaman
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Jinling Hotel and Beijing Jiaman
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Beijing Jiaman. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.0 times less risky than Beijing Jiaman. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Jiaman Dress is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,095 in Beijing Jiaman Dress on October 18, 2024 and sell it today you would lose (97.00) from holding Beijing Jiaman Dress or give up 4.63% 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. Beijing Jiaman Dress
Performance |
| Timeline |
| Jinling Hotel Corp |
| Beijing Jiaman Dress |
Jinling Hotel and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Beijing Jiaman
The main advantage of trading using opposite Jinling Hotel and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Jinling Hotel vs. Dhc Software Co | Jinling Hotel vs. Montage Technology Co | Jinling Hotel vs. Kuang Chi Technologies | Jinling Hotel vs. Hainan Airlines Co |
| Beijing Jiaman vs. Jinling Hotel Corp | Beijing Jiaman vs. Guangzhou Dongfang Hotel | Beijing Jiaman vs. Huatian Hotel Group | Beijing Jiaman vs. AVIC Fund Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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