Correlation Between Jinling Hotel and Dongxing Sec
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By analyzing existing cross correlation between Jinling Hotel Corp and Dongxing Sec Co, you can compare the effects of market volatilities on Jinling Hotel and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Dongxing Sec.
Diversification Opportunities for Jinling Hotel and Dongxing Sec
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Dongxing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Dongxing Sec go up and down completely randomly.
Pair Corralation between Jinling Hotel and Dongxing Sec
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Dongxing Sec. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.42 times less risky than Dongxing Sec. The stock trades about -0.01 of its potential returns per unit of risk. The Dongxing Sec Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Dongxing Sec Co on October 25, 2024 and sell it today you would earn a total of 50.00 from holding Dongxing Sec Co or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Dongxing Sec Co
Performance |
| Timeline |
| Jinling Hotel Corp |
| Dongxing Sec |
Jinling Hotel and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Dongxing Sec
The main advantage of trading using opposite Jinling Hotel and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Jinling Hotel vs. Beijing Mainstreets Investment | Jinling Hotel vs. Henan Shuanghui Investment | Jinling Hotel vs. Cansino Biologics | Jinling Hotel vs. Yili Chuanning Biotechnology |
| Dongxing Sec vs. Tianjin Hi Tech Development | Dongxing Sec vs. Strait Innovation Internet | Dongxing Sec vs. Linktel Technologies Co | Dongxing Sec vs. Tongyu Communication |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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