Correlation Between Jinli Group and Kingcan Holdings
Can any of the company-specific risk be diversified away by investing in both Jinli Group and Kingcan Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jinli Group and Kingcan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinli Group Holdings and Kingcan Holdings, you can compare the effects of market volatilities on Jinli Group and Kingcan Holdings 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 Jinli Group with a short position of Kingcan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinli Group and Kingcan Holdings.
Diversification Opportunities for Jinli Group and Kingcan Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinli and Kingcan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jinli Group Holdings and Kingcan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingcan Holdings and Jinli Group 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 Jinli Group Holdings are associated (or correlated) with Kingcan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingcan Holdings has no effect on the direction of Jinli Group i.e., Jinli Group and Kingcan Holdings go up and down completely randomly.
Pair Corralation between Jinli Group and Kingcan Holdings
Assuming the 90 days trading horizon Jinli Group Holdings is expected to generate 3.49 times more return on investment than Kingcan Holdings. However, Jinli Group is 3.49 times more volatile than Kingcan Holdings. It trades about 0.37 of its potential returns per unit of risk. Kingcan Holdings is currently generating about -0.31 per unit of risk. If you would invest 1,090 in Jinli Group Holdings on September 4, 2024 and sell it today you would earn a total of 265.00 from holding Jinli Group Holdings or generate 24.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinli Group Holdings vs. Kingcan Holdings
Performance |
| Timeline |
| Jinli Group Holdings |
| Kingcan Holdings |
Jinli Group and Kingcan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinli Group and Kingcan Holdings
The main advantage of trading using opposite Jinli Group and Kingcan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinli Group position performs unexpectedly, Kingcan Holdings 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 Kingcan Holdings will offset losses from the drop in Kingcan Holdings' long position.| Jinli Group vs. Tainan Spinning Co | Jinli Group vs. Chia Her Industrial | Jinli Group vs. WiseChip Semiconductor | Jinli Group vs. Novatek Microelectronics Corp |
| Kingcan Holdings vs. Jinli Group Holdings | Kingcan Holdings vs. Shinih Enterprise Co | Kingcan Holdings vs. Super Dragon Technology | Kingcan Holdings vs. Shui Mu International Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |