Correlation Between Guangdong Advertising and Shijiazhuang Tonhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Advertising Co and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Guangdong Advertising and Shijiazhuang Tonhe 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 Advertising with a short position of Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Shijiazhuang Tonhe.
Diversification Opportunities for Guangdong Advertising and Shijiazhuang Tonhe
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Shijiazhuang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising Co and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe and Guangdong Advertising 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 Advertising Co are associated (or correlated) with Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Guangdong Advertising i.e., Guangdong Advertising and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to generate 2.8 times more return on investment than Shijiazhuang Tonhe. However, Guangdong Advertising is 2.8 times more volatile than Shijiazhuang Tonhe Electronics. It trades about 0.18 of its potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about 0.18 per unit of risk. If you would invest 798.00 in Guangdong Advertising Co on September 24, 2024 and sell it today you would earn a total of 181.00 from holding Guangdong Advertising Co or generate 22.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Advertising Co vs. Shijiazhuang Tonhe Electronics
Performance |
Timeline |
Guangdong Advertising |
Shijiazhuang Tonhe |
Guangdong Advertising and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Advertising and Shijiazhuang Tonhe
The main advantage of trading using opposite Guangdong Advertising and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.Guangdong Advertising vs. Industrial and Commercial | Guangdong Advertising vs. Agricultural Bank of | Guangdong Advertising vs. China Construction Bank | Guangdong Advertising vs. Bank of China |
Shijiazhuang Tonhe vs. PetroChina Co Ltd | Shijiazhuang Tonhe vs. China Mobile Limited | Shijiazhuang Tonhe vs. CNOOC Limited | Shijiazhuang Tonhe vs. Ping An Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |