Correlation Between Jinling Hotel and China Sports
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By analyzing existing cross correlation between Jinling Hotel Corp and China Sports Industry, you can compare the effects of market volatilities on Jinling Hotel and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and China Sports.
Diversification Opportunities for Jinling Hotel and China Sports
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinling and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and China Sports go up and down completely randomly.
Pair Corralation between Jinling Hotel and China Sports
Assuming the 90 days trading horizon Jinling Hotel is expected to generate 1.53 times less return on investment than China Sports. But when comparing it to its historical volatility, Jinling Hotel Corp is 1.07 times less risky than China Sports. It trades about 0.01 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 791.00 in China Sports Industry on August 26, 2024 and sell it today you would earn a total of 3.00 from holding China Sports Industry or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. China Sports Industry
Performance |
| Timeline |
| Jinling Hotel Corp |
| China Sports Industry |
Jinling Hotel and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and China Sports
The main advantage of trading using opposite Jinling Hotel and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. China Construction Bank |
| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
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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