Correlation Between Jinling Hotel and Dazhong Transportation
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By analyzing existing cross correlation between Jinling Hotel Corp and Dazhong Transportation Group, you can compare the effects of market volatilities on Jinling Hotel and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Dazhong Transportation.
Diversification Opportunities for Jinling Hotel and Dazhong Transportation
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinling and Dazhong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Jinling Hotel and Dazhong Transportation
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Dazhong Transportation. But the stock apears to be less risky and, when comparing its historical volatility, Jinling Hotel Corp is 1.24 times less risky than Dazhong Transportation. The stock trades about -0.03 of its potential returns per unit of risk. The Dazhong Transportation Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Dazhong Transportation Group on October 16, 2024 and sell it today you would earn a total of 3.00 from holding Dazhong Transportation Group or generate 15.79% 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. Dazhong Transportation Group
Performance |
| Timeline |
| Jinling Hotel Corp |
| Dazhong Transportation |
Jinling Hotel and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Dazhong Transportation
The main advantage of trading using opposite Jinling Hotel and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Jinling Hotel vs. Weihai Honglin Electronic | Jinling Hotel vs. Jiangxi Naipu Mining | Jinling Hotel vs. Pengxin International Mining | Jinling Hotel vs. Shengda Mining Co |
| Dazhong Transportation vs. Puya Semiconductor Shanghai | Dazhong Transportation vs. Mingchen Health Co | Dazhong Transportation vs. PKU HealthCare Corp | Dazhong Transportation vs. Nexchip Semiconductor Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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