Correlation Between Guangdong Jingyi and Guangzhou Jinyi
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Guangdong Jingyi and Guangzhou Jinyi 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 Guangdong Jingyi with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Guangzhou Jinyi.
Diversification Opportunities for Guangdong Jingyi and Guangzhou Jinyi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Guangzhou Jinyi
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.8 times more return on investment than Guangzhou Jinyi. However, Guangdong Jingyi Metal is 1.25 times less risky than Guangzhou Jinyi. It trades about 0.16 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.11 per unit of risk. If you would invest 537.00 in Guangdong Jingyi Metal on September 26, 2024 and sell it today you would earn a total of 159.00 from holding Guangdong Jingyi Metal or generate 29.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Guangzhou Jinyi Media
Performance |
Timeline |
Guangdong Jingyi Metal |
Guangzhou Jinyi Media |
Guangdong Jingyi and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Guangzhou Jinyi
The main advantage of trading using opposite Guangdong Jingyi and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
Guangzhou Jinyi vs. Huaxia Fund Management | Guangzhou Jinyi vs. Bomin Electronics Co | Guangzhou Jinyi vs. Shijiazhuang Tonhe Electronics | Guangzhou Jinyi vs. Leaguer Shenzhen MicroElectronics |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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