Correlation Between Jinling Hotel and Dalian Thermal
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By analyzing existing cross correlation between Jinling Hotel Corp and Dalian Thermal Power, you can compare the effects of market volatilities on Jinling Hotel and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Dalian Thermal.
Diversification Opportunities for Jinling Hotel and Dalian Thermal
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Dalian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Dalian Thermal go up and down completely randomly.
Pair Corralation between Jinling Hotel and Dalian Thermal
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Dalian Thermal. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.59 times less risky than Dalian Thermal. The stock trades about -0.03 of its potential returns per unit of risk. The Dalian Thermal Power is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 557.00 in Dalian Thermal Power on October 16, 2024 and sell it today you would earn a total of 64.00 from holding Dalian Thermal Power or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Dalian Thermal Power
Performance |
| Timeline |
| Jinling Hotel Corp |
| Dalian Thermal Power |
Jinling Hotel and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Dalian Thermal
The main advantage of trading using opposite Jinling Hotel and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
| Dalian Thermal vs. Chengdu Xingrong Investment | Dalian Thermal vs. Hubei Geoway Investment | Dalian Thermal vs. Rising Nonferrous Metals | Dalian Thermal vs. Hunan Investment Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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