Correlation Between Jinling Hotel and Heilongjiang Publishing
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By analyzing existing cross correlation between Jinling Hotel Corp and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Jinling Hotel and Heilongjiang Publishing 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 Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Heilongjiang Publishing.
Diversification Opportunities for Jinling Hotel and Heilongjiang Publishing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinling and Heilongjiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Jinling Hotel and Heilongjiang Publishing
Assuming the 90 days trading horizon Jinling Hotel is expected to generate 29.14 times less return on investment than Heilongjiang Publishing. But when comparing it to its historical volatility, Jinling Hotel Corp is 2.22 times less risky than Heilongjiang Publishing. It trades about 0.01 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,458 in Heilongjiang Publishing Media on August 26, 2024 and sell it today you would earn a total of 219.00 from holding Heilongjiang Publishing Media or generate 15.02% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Jinling Hotel Corp |
| Heilongjiang Publishing |
Jinling Hotel and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Heilongjiang Publishing
The main advantage of trading using opposite Jinling Hotel and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Heilongjiang Publishing 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 Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. China Construction Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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