Correlation Between Jinling Hotel and Huaibei Mining
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By analyzing existing cross correlation between Jinling Hotel Corp and Huaibei Mining Holdings, you can compare the effects of market volatilities on Jinling Hotel and Huaibei Mining 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 Jinling Hotel with a short position of Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Huaibei Mining.
Diversification Opportunities for Jinling Hotel and Huaibei Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinling and Huaibei is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings and Jinling Hotel 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 Jinling Hotel Corp are associated (or correlated) with Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Jinling Hotel i.e., Jinling Hotel and Huaibei Mining go up and down completely randomly.
Pair Corralation between Jinling Hotel and Huaibei Mining
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to generate 0.99 times more return on investment than Huaibei Mining. However, Jinling Hotel Corp is 1.01 times less risky than Huaibei Mining. It trades about 0.12 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.0 per unit of risk. If you would invest 618.00 in Jinling Hotel Corp on September 23, 2024 and sell it today you would earn a total of 118.00 from holding Jinling Hotel Corp or generate 19.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jinling Hotel Corp vs. Huaibei Mining Holdings
Performance |
Timeline |
Jinling Hotel Corp |
Huaibei Mining Holdings |
Jinling Hotel and Huaibei Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinling Hotel and Huaibei Mining
The main advantage of trading using opposite Jinling Hotel and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.Jinling Hotel vs. Tianshan Aluminum Group | Jinling Hotel vs. Panda Financial Holding | Jinling Hotel vs. Chongqing Shunbo Aluminum | Jinling Hotel vs. Bank of Suzhou |
Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Wanhua Chemical Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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