Correlation Between Jinli Group and Ton Yi
Can any of the company-specific risk be diversified away by investing in both Jinli Group and Ton Yi 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 Ton Yi 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 Ton Yi Industrial, you can compare the effects of market volatilities on Jinli Group and Ton Yi 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 Ton Yi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinli Group and Ton Yi.
Diversification Opportunities for Jinli Group and Ton Yi
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinli and Ton is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jinli Group Holdings and Ton Yi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ton Yi Industrial 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 Ton Yi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ton Yi Industrial has no effect on the direction of Jinli Group i.e., Jinli Group and Ton Yi go up and down completely randomly.
Pair Corralation between Jinli Group and Ton Yi
Assuming the 90 days trading horizon Jinli Group Holdings is expected to generate 1.35 times more return on investment than Ton Yi. However, Jinli Group is 1.35 times more volatile than Ton Yi Industrial. It trades about 0.03 of its potential returns per unit of risk. Ton Yi Industrial is currently generating about -0.01 per unit of risk. If you would invest 1,120 in Jinli Group Holdings on September 3, 2024 and sell it today you would earn a total of 235.00 from holding Jinli Group Holdings or generate 20.98% 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. Ton Yi Industrial
Performance |
| Timeline |
| Jinli Group Holdings |
| Ton Yi Industrial |
Jinli Group and Ton Yi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinli Group and Ton Yi
The main advantage of trading using opposite Jinli Group and Ton Yi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinli Group position performs unexpectedly, Ton Yi 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 Ton Yi will offset losses from the drop in Ton Yi's long position.| Jinli Group vs. Shui Mu International Co | Jinli Group vs. Les Enphants Co | Jinli Group vs. Victory New Materials | Jinli Group vs. Shinih Enterprise 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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