Correlation Between Anhui Gujing and Jinling Hotel
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By analyzing existing cross correlation between Anhui Gujing Distillery and Jinling Hotel Corp, you can compare the effects of market volatilities on Anhui Gujing and Jinling Hotel 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 Anhui Gujing with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jinling Hotel.
Diversification Opportunities for Anhui Gujing and Jinling Hotel
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Jinling is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp and Anhui Gujing 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 Anhui Gujing Distillery are associated (or correlated) with Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Jinling Hotel go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jinling Hotel
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 1.56 times more return on investment than Jinling Hotel. However, Anhui Gujing is 1.56 times more volatile than Jinling Hotel Corp. It trades about 0.14 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.16 per unit of risk. If you would invest 14,650 in Anhui Gujing Distillery on September 12, 2024 and sell it today you would earn a total of 4,600 from holding Anhui Gujing Distillery or generate 31.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Gujing Distillery vs. Jinling Hotel Corp
Performance |
Timeline |
Anhui Gujing Distillery |
Jinling Hotel Corp |
Anhui Gujing and Jinling Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Gujing and Jinling Hotel
The main advantage of trading using opposite Anhui Gujing and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.Anhui Gujing vs. China Petroleum Chemical | Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. China State Construction | Anhui Gujing vs. China Railway Group |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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