Correlation Between Jinhui Shipping and Meiko Electronics

Can any of the company-specific risk be diversified away by investing in both Jinhui Shipping and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on Jinhui Shipping and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Shipping and Meiko Electronics.

Diversification Opportunities for Jinhui Shipping and Meiko Electronics

-0.01

Correlation Coefficient

Jinhui Shipping  Meiko Electronics

Good diversification

The 3 months correlation between Jinhui and Meiko is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Shipping and and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of Jinhui Shipping i.e., Jinhui Shipping and Meiko Electronics go up and down completely randomly.

Pair Corralation between Jinhui Shipping and Meiko Electronics

Assuming the 90 days horizon Jinhui Shipping and is expected to generate 0.92 times more return on investment than Meiko Electronics. However, Jinhui Shipping and is 1.09 times less risky than Meiko Electronics. It trades about 0.13 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about 0.05 per unit of risk. If you would invest  42.00  in Jinhui Shipping and on April 24, 2025 and sell it today you would earn a total of  8.00  from holding Jinhui Shipping and or generate 19.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jinhui Shipping and  vs.  Meiko Electronics Co

Jinhui Shipping

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jinhui Shipping and are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Jinhui Shipping reported solid returns over the last few months and may actually be approaching a breakup point.

Meiko Electronics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Meiko Electronics Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Meiko Electronics may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jinhui Shipping and Meiko Electronics

The main advantage of trading using opposite Jinhui Shipping and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Shipping position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.

The idea behind Jinhui Shipping and and Meiko Electronics Co 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.