Correlation Between Shanghai Action and Jinling Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Action Education and Jinling Hotel Corp, you can compare the effects of market volatilities on Shanghai Action and Jinling Hotel 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 Shanghai Action with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Jinling Hotel.
Diversification Opportunities for Shanghai Action and Jinling Hotel
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jinling is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp and Shanghai Action 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 Shanghai Action Education are associated (or correlated) with Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Shanghai Action i.e., Shanghai Action and Jinling Hotel go up and down completely randomly.
Pair Corralation between Shanghai Action and Jinling Hotel
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 1.05 times more return on investment than Jinling Hotel. However, Shanghai Action is 1.05 times more volatile than Jinling Hotel Corp. It trades about 0.03 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.01 per unit of risk. If you would invest 2,678 in Shanghai Action Education on August 30, 2024 and sell it today you would earn a total of 628.00 from holding Shanghai Action Education or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Jinling Hotel Corp
Performance |
| Timeline |
| Shanghai Action Education |
| Jinling Hotel Corp |
Shanghai Action and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Jinling Hotel
The main advantage of trading using opposite Shanghai Action and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Shanghai Action vs. Agricultural Bank of | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. Bank of China | Shanghai Action vs. China Construction Bank |
| Jinling Hotel vs. Agricultural Bank of | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. Bank of China | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |