Correlation Between Shinih Enterprise and Jinli Group
Can any of the company-specific risk be diversified away by investing in both Shinih Enterprise and Jinli Group 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 Shinih Enterprise and Jinli Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinih Enterprise Co and Jinli Group Holdings, you can compare the effects of market volatilities on Shinih Enterprise and Jinli Group 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 Shinih Enterprise with a short position of Jinli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinih Enterprise and Jinli Group.
Diversification Opportunities for Shinih Enterprise and Jinli Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinih and Jinli is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shinih Enterprise Co and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings and Shinih Enterprise 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 Shinih Enterprise Co are associated (or correlated) with Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of Shinih Enterprise i.e., Shinih Enterprise and Jinli Group go up and down completely randomly.
Pair Corralation between Shinih Enterprise and Jinli Group
Assuming the 90 days trading horizon Shinih Enterprise is expected to generate 5.88 times less return on investment than Jinli Group. But when comparing it to its historical volatility, Shinih Enterprise Co is 3.28 times less risky than Jinli Group. It trades about 0.14 of its potential returns per unit of risk. Jinli Group Holdings is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Jinli Group Holdings on November 28, 2024 and sell it today you would earn a total of 70.00 from holding Jinli Group Holdings or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Shinih Enterprise Co vs. Jinli Group Holdings
Performance |
| Timeline |
| Shinih Enterprise |
| Jinli Group Holdings |
Shinih Enterprise and Jinli Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinih Enterprise and Jinli Group
The main advantage of trading using opposite Shinih Enterprise and Jinli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinih Enterprise position performs unexpectedly, Jinli Group 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 Jinli Group will offset losses from the drop in Jinli Group's long position.| Shinih Enterprise vs. Ton Yi Industrial | Shinih Enterprise vs. Super Dragon Technology | Shinih Enterprise vs. Min Aik Technology | Shinih Enterprise vs. Hung Sheng Construction |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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