Correlation Between 159005 and Jinling Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159005 and Jinling Hotel Corp, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Jinling Hotel.
Diversification Opportunities for 159005 and Jinling Hotel
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Jinling is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Jinling Hotel go up and down completely randomly.
Pair Corralation between 159005 and Jinling Hotel
Assuming the 90 days trading horizon 159005 is expected to generate 9.46 times less return on investment than Jinling Hotel. But when comparing it to its historical volatility, 159005 is 90.45 times less risky than Jinling Hotel. It trades about 0.22 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Jinling Hotel Corp on September 25, 2024 and sell it today you would earn a total of 4.00 from holding Jinling Hotel Corp or generate 0.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
159005 vs. Jinling Hotel Corp
Performance |
Timeline |
159005 |
Jinling Hotel Corp |
159005 and Jinling Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159005 and Jinling Hotel
The main advantage of trading using opposite 159005 and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Jinling Hotel Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Jinling Hotel vs. Bank of China | Jinling Hotel vs. Kweichow Moutai Co | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Bank of Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Fundamental Analysis View fundamental data based on most recent published financial statements |