Correlation Between Jinhui Shipping and Pryme BV
Can any of the company-specific risk be diversified away by investing in both Jinhui Shipping and Pryme BV 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 Pryme BV 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 Pryme BV, you can compare the effects of market volatilities on Jinhui Shipping and Pryme BV 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 Pryme BV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Shipping and Pryme BV.
Diversification Opportunities for Jinhui Shipping and Pryme BV
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinhui and Pryme is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Shipping and and Pryme BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pryme BV 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 Pryme BV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pryme BV has no effect on the direction of Jinhui Shipping i.e., Jinhui Shipping and Pryme BV go up and down completely randomly.
Pair Corralation between Jinhui Shipping and Pryme BV
Assuming the 90 days trading horizon Jinhui Shipping is expected to generate 1.28 times less return on investment than Pryme BV. But when comparing it to its historical volatility, Jinhui Shipping and is 3.68 times less risky than Pryme BV. It trades about 0.11 of its potential returns per unit of risk. Pryme BV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,495 in Pryme BV on June 12, 2025 and sell it today you would lose (20.00) from holding Pryme BV or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Shipping and vs. Pryme BV
Performance |
| Timeline |
| Jinhui Shipping |
| Pryme BV |
Jinhui Shipping and Pryme BV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Shipping and Pryme BV
The main advantage of trading using opposite Jinhui Shipping and Pryme BV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Shipping position performs unexpectedly, Pryme BV 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 Pryme BV will offset losses from the drop in Pryme BV's long position.| Jinhui Shipping vs. Frontline | Jinhui Shipping vs. Dampskibsselskabet Norden AS | Jinhui Shipping vs. BW LPG | Jinhui Shipping vs. Stolt Nielsen Limited |
| Pryme BV vs. Arcticzymes Technologies ASA | Pryme BV vs. Napatech AS | Pryme BV vs. Skue Sparebank | Pryme BV vs. Bien Sparebank ASA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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