Correlation Between Guangzhou Jinyi and Shenzhen Agricultural
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Guangzhou Jinyi and Shenzhen Agricultural 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 Guangzhou Jinyi with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Shenzhen Agricultural.
Diversification Opportunities for Guangzhou Jinyi and Shenzhen Agricultural
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Guangzhou Jinyi 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 Guangzhou Jinyi Media are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Shenzhen Agricultural
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.43 times more return on investment than Shenzhen Agricultural. However, Guangzhou Jinyi is 1.43 times more volatile than Shenzhen Agricultural Products. It trades about 0.27 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.27 per unit of risk. If you would invest 550.00 in Guangzhou Jinyi Media on September 15, 2024 and sell it today you would earn a total of 369.00 from holding Guangzhou Jinyi Media or generate 67.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Jinyi Media vs. Shenzhen Agricultural Products
Performance |
Timeline |
Guangzhou Jinyi Media |
Shenzhen Agricultural |
Guangzhou Jinyi and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Jinyi and Shenzhen Agricultural
The main advantage of trading using opposite Guangzhou Jinyi and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.Guangzhou Jinyi vs. Industrial and Commercial | ||
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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