Correlation Between COSCO SHIPPING and Jinhui Shipping
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING 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 COSCO SHIPPING and Jinhui Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING Energy and Jinhui Shipping and, you can compare the effects of market volatilities on COSCO SHIPPING 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 COSCO SHIPPING with a short position of Jinhui Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and Jinhui Shipping.
Diversification Opportunities for COSCO SHIPPING and Jinhui Shipping
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COSCO and Jinhui is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Energy and Jinhui Shipping and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Shipping and COSCO SHIPPING 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 COSCO SHIPPING Energy 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 COSCO SHIPPING i.e., COSCO SHIPPING and Jinhui Shipping go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and Jinhui Shipping
Assuming the 90 days trading horizon COSCO SHIPPING Energy is expected to under-perform the Jinhui Shipping. In addition to that, COSCO SHIPPING is 1.96 times more volatile than Jinhui Shipping and. It trades about -0.09 of its total potential returns per unit of risk. Jinhui Shipping and is currently generating about -0.05 per unit of volatility. If you would invest 47.00 in Jinhui Shipping and on November 28, 2024 and sell it today you would lose (1.00) from holding Jinhui Shipping and or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COSCO SHIPPING Energy vs. Jinhui Shipping and
Performance |
| Timeline |
| COSCO SHIPPING Energy |
| Jinhui Shipping |
COSCO SHIPPING and Jinhui Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSCO SHIPPING and Jinhui Shipping
The main advantage of trading using opposite COSCO SHIPPING and Jinhui Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING 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.| COSCO SHIPPING vs. DELTA AIR LINES | COSCO SHIPPING vs. China Telecom | COSCO SHIPPING vs. Enter Air SA | COSCO SHIPPING vs. Iridium Communications |
| Jinhui Shipping vs. Laureate Education | Jinhui Shipping vs. PLAYSTUDIOS A DL 0001 | Jinhui Shipping vs. LG Display Co | Jinhui Shipping vs. Live Nation Entertainment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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