Correlation Between Jinling Hotel and Heilongjiang Transport
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By analyzing existing cross correlation between Jinling Hotel Corp and Heilongjiang Transport Development, you can compare the effects of market volatilities on Jinling Hotel and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Heilongjiang Transport.
Diversification Opportunities for Jinling Hotel and Heilongjiang Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinling and Heilongjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Jinling Hotel and Heilongjiang Transport
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.06 times less risky than Heilongjiang Transport. The stock trades about -0.24 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Heilongjiang Transport Development on October 11, 2024 and sell it today you would lose (50.00) from holding Heilongjiang Transport Development or give up 12.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Jinling Hotel Corp |
| Heilongjiang Transport |
Jinling Hotel and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Heilongjiang Transport
The main advantage of trading using opposite Jinling Hotel and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Jinling Hotel vs. Jiujiang Shanshui Technology | Jinling Hotel vs. Smartgiant Technology Co | Jinling Hotel vs. Shanghai Yanpu Metal | Jinling Hotel vs. Ye Chiu Metal |
| Heilongjiang Transport vs. Ningbo Tech Bank Co | Heilongjiang Transport vs. Huatian Hotel Group | Heilongjiang Transport vs. Jinling Hotel Corp | Heilongjiang Transport vs. Jiangsu Financial Leasing |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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