Correlation Between Jinling Hotel and Hunan Tyen
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By analyzing existing cross correlation between Jinling Hotel Corp and Hunan Tyen Machinery, you can compare the effects of market volatilities on Jinling Hotel and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Hunan Tyen.
Diversification Opportunities for Jinling Hotel and Hunan Tyen
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinling and Hunan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Hunan Tyen go up and down completely randomly.
Pair Corralation between Jinling Hotel and Hunan Tyen
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Hunan Tyen. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.14 times less risky than Hunan Tyen. The stock trades about -0.02 of its potential returns per unit of risk. The Hunan Tyen Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 535.00 in Hunan Tyen Machinery on August 25, 2024 and sell it today you would lose (25.00) from holding Hunan Tyen Machinery or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Jinling Hotel Corp |
| Hunan Tyen Machinery |
Jinling Hotel and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Hunan Tyen
The main advantage of trading using opposite Jinling Hotel and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Jinling Hotel vs. Ningbo Fangzheng Automobile | Jinling Hotel vs. Road Environment Technology | Jinling Hotel vs. Glodon Software Co | Jinling Hotel vs. Linewell Software Co |
| Hunan Tyen vs. Jinling Hotel Corp | Hunan Tyen vs. BTG Hotels Group | Hunan Tyen vs. Epoxy Base Electronic | Hunan Tyen vs. Fiberhome Telecommunication Technologies |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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