Correlation Between Jinling Hotel and ButOne Information
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By analyzing existing cross correlation between Jinling Hotel Corp and ButOne Information Corp, you can compare the effects of market volatilities on Jinling Hotel and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and ButOne Information.
Diversification Opportunities for Jinling Hotel and ButOne Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and ButOne is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and ButOne Information go up and down completely randomly.
Pair Corralation between Jinling Hotel and ButOne Information
Assuming the 90 days trading horizon Jinling Hotel is expected to generate 3.53 times less return on investment than ButOne Information. But when comparing it to its historical volatility, Jinling Hotel Corp is 1.54 times less risky than ButOne Information. It trades about 0.06 of its potential returns per unit of risk. ButOne Information Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,521 in ButOne Information Corp on September 5, 2024 and sell it today you would earn a total of 905.00 from holding ButOne Information Corp or generate 59.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. ButOne Information Corp
Performance |
| Timeline |
| Jinling Hotel Corp |
| ButOne Information Corp |
Jinling Hotel and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and ButOne Information
The main advantage of trading using opposite Jinling Hotel and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Jinling Hotel vs. Xiandai Investment Co | Jinling Hotel vs. Guangdong Jinming Machinery | Jinling Hotel vs. Jiangsu Yueda Investment | Jinling Hotel vs. Anhui Huilong Agricultural |
| ButOne Information vs. Beijing SPC Environment | ButOne Information vs. Gansu Jiu Steel | ButOne Information vs. Central Plains Environment | ButOne Information vs. Penyao Environmental Protection |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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