Correlation Between Jinhui Shipping and Saga Pure
Can any of the company-specific risk be diversified away by investing in both Jinhui Shipping and Saga Pure 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 Jinhui Shipping and Saga Pure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinhui Shipping and and Saga Pure ASA, you can compare the effects of market volatilities on Jinhui Shipping and Saga Pure 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 Jinhui Shipping with a short position of Saga Pure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Shipping and Saga Pure.
Diversification Opportunities for Jinhui Shipping and Saga Pure
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Saga is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Shipping and and Saga Pure ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saga Pure ASA and Jinhui 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 Jinhui Shipping and are associated (or correlated) with Saga Pure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saga Pure ASA has no effect on the direction of Jinhui Shipping i.e., Jinhui Shipping and Saga Pure go up and down completely randomly.
Pair Corralation between Jinhui Shipping and Saga Pure
Assuming the 90 days trading horizon Jinhui Shipping and is expected to generate 3.54 times more return on investment than Saga Pure. However, Jinhui Shipping is 3.54 times more volatile than Saga Pure ASA. It trades about 0.11 of its potential returns per unit of risk. Saga Pure ASA is currently generating about -0.07 per unit of risk. If you would invest 584.00 in Jinhui Shipping and on October 24, 2024 and sell it today you would earn a total of 24.00 from holding Jinhui Shipping and or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Shipping and vs. Saga Pure ASA
Performance |
| Timeline |
| Jinhui Shipping |
| Saga Pure ASA |
Jinhui Shipping and Saga Pure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Shipping and Saga Pure
The main advantage of trading using opposite Jinhui Shipping and Saga Pure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Shipping position performs unexpectedly, Saga Pure 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 Saga Pure will offset losses from the drop in Saga Pure's long position.| Jinhui Shipping vs. Havila Shipping ASA | Jinhui Shipping vs. Shelf Drilling | Jinhui Shipping vs. Solstad Offsho | Jinhui Shipping vs. Eidesvik Offshore ASA |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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