Correlation Between GRIPM Advanced and Jinling Hotel
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By analyzing existing cross correlation between GRIPM Advanced Materials and Jinling Hotel Corp, you can compare the effects of market volatilities on GRIPM Advanced 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 GRIPM Advanced with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Jinling Hotel.
Diversification Opportunities for GRIPM Advanced and Jinling Hotel
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GRIPM and Jinling is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials 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 GRIPM Advanced 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 GRIPM Advanced Materials 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 GRIPM Advanced i.e., GRIPM Advanced and Jinling Hotel go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Jinling Hotel
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.56 times more return on investment than Jinling Hotel. However, GRIPM Advanced is 1.56 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 3,365 in GRIPM Advanced Materials on November 28, 2024 and sell it today you would earn a total of 179.00 from holding GRIPM Advanced Materials or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Jinling Hotel Corp
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Jinling Hotel Corp |
GRIPM Advanced and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Jinling Hotel
The main advantage of trading using opposite GRIPM Advanced and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced 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.| GRIPM Advanced vs. Hangzhou Pinming Software | GRIPM Advanced vs. Jiaozuo Wanfang Aluminum | GRIPM Advanced vs. Linkage Software Co | GRIPM Advanced vs. Shenzhen Urban Transport |
| Jinling Hotel vs. Luyin Investment Group | Jinling Hotel vs. Suzhou Mingzhi Technology | Jinling Hotel vs. Vanfund Urban Investment | Jinling Hotel vs. Tieling Newcity Investment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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