Correlation Between Golden Ocean and Jinhui Shipping
Can any of the company-specific risk be diversified away by investing in both Golden Ocean and Jinhui Shipping 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 Golden Ocean and Jinhui Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ocean Group and Jinhui Shipping and, you can compare the effects of market volatilities on Golden Ocean and Jinhui Shipping 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 Golden Ocean with a short position of Jinhui Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ocean and Jinhui Shipping.
Diversification Opportunities for Golden Ocean and Jinhui Shipping
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Jinhui is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ocean Group and Jinhui Shipping and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Shipping and Golden Ocean 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 Golden Ocean Group are associated (or correlated) with Jinhui Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Shipping has no effect on the direction of Golden Ocean i.e., Golden Ocean and Jinhui Shipping go up and down completely randomly.
Pair Corralation between Golden Ocean and Jinhui Shipping
Assuming the 90 days trading horizon Golden Ocean Group is expected to under-perform the Jinhui Shipping. But the stock apears to be less risky and, when comparing its historical volatility, Golden Ocean Group is 1.13 times less risky than Jinhui Shipping. The stock trades about -0.09 of its potential returns per unit of risk. The Jinhui Shipping and is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 626.00 in Jinhui Shipping and on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Jinhui Shipping and or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Golden Ocean Group vs. Jinhui Shipping and
Performance |
| Timeline |
| Golden Ocean Group |
| Jinhui Shipping |
Golden Ocean and Jinhui Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ocean and Jinhui Shipping
The main advantage of trading using opposite Golden Ocean and Jinhui Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ocean position performs unexpectedly, Jinhui Shipping 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 Jinhui Shipping will offset losses from the drop in Jinhui Shipping's long position.| Golden Ocean vs. Frontline | Golden Ocean vs. BW LPG | Golden Ocean vs. Jinhui Shipping and | Golden Ocean vs. FLEX LNG |
| Jinhui Shipping vs. Havila Shipping ASA | Jinhui Shipping vs. Shelf Drilling | Jinhui Shipping vs. Solstad Offsho | Jinhui Shipping vs. Eidesvik Offshore ASA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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