Correlation Between Jinling Hotel and Gansu Yasheng
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By analyzing existing cross correlation between Jinling Hotel Corp and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Jinling Hotel and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Gansu Yasheng.
Diversification Opportunities for Jinling Hotel and Gansu Yasheng
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinling and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Jinling Hotel and Gansu Yasheng
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Gansu Yasheng. In addition to that, Jinling Hotel is 1.42 times more volatile than Gansu Yasheng Industrial. It trades about -0.03 of its total potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.01 per unit of volatility. If you would invest 323.00 in Gansu Yasheng Industrial on November 28, 2024 and sell it today you would lose (42.00) from holding Gansu Yasheng Industrial or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Jinling Hotel Corp |
| Gansu Yasheng Industrial |
Jinling Hotel and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Gansu Yasheng
The main advantage of trading using opposite Jinling Hotel and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Jinling Hotel vs. Luyin Investment Group | Jinling Hotel vs. Suzhou Mingzhi Technology | Jinling Hotel vs. Vanfund Urban Investment | Jinling Hotel vs. Tieling Newcity Investment |
| Gansu Yasheng vs. Kidswant Children Products | Gansu Yasheng vs. Suzhou Douson Drilling | Gansu Yasheng vs. Shaanxi Meineng Clean | Gansu Yasheng vs. Shandong Longquan Pipeline |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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