Correlation Between Jinling Hotel and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinling Hotel Corp and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Jinling Hotel and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Fiberhome Telecommunicatio.
Diversification Opportunities for Jinling Hotel and Fiberhome Telecommunicatio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinling and Fiberhome is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Jinling Hotel and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.79 times more return on investment than Fiberhome Telecommunicatio. However, Jinling Hotel Corp is 1.26 times less risky than Fiberhome Telecommunicatio. It trades about 0.12 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.04 per unit of risk. If you would invest 689.00 in Jinling Hotel Corp on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Jinling Hotel Corp or generate 5.52% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Jinling Hotel Corp |
| Fiberhome Telecommunicatio |
Jinling Hotel and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Fiberhome Telecommunicatio
The main advantage of trading using opposite Jinling Hotel and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's 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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |