Correlation Between Jinhui Shipping and Braemar Shipping

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

Diversification Opportunities for Jinhui Shipping and Braemar Shipping

0.53

Correlation Coefficient

Jinhui Shipping  Braemar Shipping

Very weak diversification

The 3 months correlation between Jinhui and Braemar is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Shipping and and Braemar Shipping Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braemar Shipping Services 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 Braemar Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braemar Shipping Services has no effect on the direction of Jinhui Shipping i.e., Jinhui Shipping and Braemar Shipping go up and down completely randomly.

Pair Corralation between Jinhui Shipping and Braemar Shipping

Assuming the 90 days horizon Jinhui Shipping and is expected to under-perform the Braemar Shipping. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jinhui Shipping and is 1.24 times less risky than Braemar Shipping. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Braemar Shipping Services is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  300.00  in Braemar Shipping Services on October 6, 2025 and sell it today you would lose (18.00) from holding Braemar Shipping Services or give up 6.0% of portfolio value over 90 days.

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

Jinhui Shipping and  vs.  Braemar Shipping Services

Jinhui Shipping

Risk-Adjusted Performance

Weakest

Over the last 90 days Jinhui Shipping and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Braemar Shipping Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Braemar Shipping Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Braemar Shipping is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jinhui Shipping and Braemar Shipping

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

The idea behind Jinhui Shipping and and Braemar Shipping Services 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .