Correlation Between Biwin Storage and Jinling Hotel
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By analyzing existing cross correlation between Biwin Storage Technology and Jinling Hotel Corp, you can compare the effects of market volatilities on Biwin Storage 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 Biwin Storage with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Jinling Hotel.
Diversification Opportunities for Biwin Storage and Jinling Hotel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Jinling is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology 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 Biwin Storage 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 Biwin Storage Technology 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 Biwin Storage i.e., Biwin Storage and Jinling Hotel go up and down completely randomly.
Pair Corralation between Biwin Storage and Jinling Hotel
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 2.17 times more return on investment than Jinling Hotel. However, Biwin Storage is 2.17 times more volatile than Jinling Hotel Corp. It trades about 0.13 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 4,228 in Biwin Storage Technology on September 12, 2024 and sell it today you would earn a total of 1,655 from holding Biwin Storage Technology or generate 39.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Biwin Storage Technology vs. Jinling Hotel Corp
Performance |
Timeline |
Biwin Storage Technology |
Jinling Hotel Corp |
Biwin Storage and Jinling Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biwin Storage and Jinling Hotel
The main advantage of trading using opposite Biwin Storage and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage 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.Biwin Storage vs. Gansu Jiu Steel | Biwin Storage vs. Shandong Mining Machinery | Biwin Storage vs. Aba Chemicals Corp | Biwin Storage vs. BlueFocus Communication Group |
Jinling Hotel vs. Lutian Machinery Co | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Bank of China | Jinling Hotel vs. Gansu Jiu Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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