Correlation Between Jinling Hotel and Linewell Software
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By analyzing existing cross correlation between Jinling Hotel Corp and Linewell Software Co, you can compare the effects of market volatilities on Jinling Hotel and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Linewell Software.
Diversification Opportunities for Jinling Hotel and Linewell Software
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Linewell is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Linewell Software go up and down completely randomly.
Pair Corralation between Jinling Hotel and Linewell Software
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Linewell Software. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.39 times less risky than Linewell Software. The stock trades about -0.14 of its potential returns per unit of risk. The Linewell Software Co is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,029 in Linewell Software Co on November 3, 2024 and sell it today you would earn a total of 218.00 from holding Linewell Software Co or generate 21.19% 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. Linewell Software Co
Performance |
| Timeline |
| Jinling Hotel Corp |
| Linewell Software |
Jinling Hotel and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Linewell Software
The main advantage of trading using opposite Jinling Hotel and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Jinling Hotel vs. Jiangsu Financial Leasing | Jinling Hotel vs. Bomesc Offshore Engineering | Jinling Hotel vs. Guangzhou Dongfang Hotel | Jinling Hotel vs. Xiandai Investment Co |
| Linewell Software vs. Dareway Software Co | Linewell Software vs. Hefei Metalforming Mach | Linewell Software vs. China Aluminum International | Linewell Software vs. China National Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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