Correlation Between Eastern Communications and Jinling Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Jinling Hotel.
Diversification Opportunities for Eastern Communications and Jinling Hotel
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Jinling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Jinling Hotel go up and down completely randomly.
Pair Corralation between Eastern Communications and Jinling Hotel
Assuming the 90 days trading horizon Eastern Communications is expected to generate 1.89 times less return on investment than Jinling Hotel. In addition to that, Eastern Communications is 1.22 times more volatile than Jinling Hotel Corp. It trades about 0.05 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.12 per unit of volatility. If you would invest 689.00 in Jinling Hotel Corp on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Jinling Hotel Corp or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Jinling Hotel Corp
Performance |
| Timeline |
| Eastern Communications |
| Jinling Hotel Corp |
Eastern Communications and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Jinling Hotel
The main advantage of trading using opposite Eastern Communications and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Guangdong Jinma Entertainment | Eastern Communications vs. Huaibei Mining Holdings | Eastern Communications vs. Zijin Mining Group | Eastern Communications vs. Xinjiang Baodi Mining |
| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |