Correlation Between Hyster Yale and JINHUI SHIPPING
Can any of the company-specific risk be diversified away by investing in both Hyster Yale 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 Hyster Yale and JINHUI SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and JINHUI SHIPPING, you can compare the effects of market volatilities on Hyster Yale 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 Hyster Yale with a short position of JINHUI SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and JINHUI SHIPPING.
Diversification Opportunities for Hyster Yale and JINHUI SHIPPING
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyster and JINHUI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and JINHUI SHIPPING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINHUI SHIPPING and Hyster Yale 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 Hyster Yale Materials Handling 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 Hyster Yale i.e., Hyster Yale and JINHUI SHIPPING go up and down completely randomly.
Pair Corralation between Hyster Yale and JINHUI SHIPPING
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.3 times more return on investment than JINHUI SHIPPING. However, Hyster Yale is 1.3 times more volatile than JINHUI SHIPPING. It trades about 0.05 of its potential returns per unit of risk. JINHUI SHIPPING is currently generating about -0.02 per unit of risk. If you would invest 2,883 in Hyster Yale Materials Handling on November 19, 2024 and sell it today you would earn a total of 2,057 from holding Hyster Yale Materials Handling or generate 71.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. JINHUI SHIPPING
Performance |
| Timeline |
| Hyster Yale Materials |
| JINHUI SHIPPING |
Hyster Yale and JINHUI SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and JINHUI SHIPPING
The main advantage of trading using opposite Hyster Yale and JINHUI SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale 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.| Hyster Yale vs. COVIVIO HOTELS INH | Hyster Yale vs. Jacquet Metal Service | Hyster Yale vs. PPHE HOTEL GROUP | Hyster Yale vs. Zijin Mining Group |
| JINHUI SHIPPING vs. Aya Gold Silver | JINHUI SHIPPING vs. MAVEN WIRELESS SWEDEN | JINHUI SHIPPING vs. Infrastrutture Wireless Italiane | JINHUI SHIPPING vs. BANKINTER ADR 2007 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets |