Correlation Between Guangzhou Jinyi and Zhejiang Longsheng
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Zhejiang Longsheng Group, you can compare the effects of market volatilities on Guangzhou Jinyi and Zhejiang Longsheng 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 Zhejiang Longsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Zhejiang Longsheng.
Diversification Opportunities for Guangzhou Jinyi and Zhejiang Longsheng
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhejiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Zhejiang Longsheng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Longsheng 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 Zhejiang Longsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Longsheng has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Zhejiang Longsheng go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Zhejiang Longsheng
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 2.85 times more return on investment than Zhejiang Longsheng. However, Guangzhou Jinyi is 2.85 times more volatile than Zhejiang Longsheng Group. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Longsheng Group is currently generating about -0.02 per unit of risk. If you would invest 643.00 in Guangzhou Jinyi Media on October 21, 2024 and sell it today you would earn a total of 93.00 from holding Guangzhou Jinyi Media or generate 14.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Jinyi Media vs. Zhejiang Longsheng Group
Performance |
Timeline |
Guangzhou Jinyi Media |
Zhejiang Longsheng |
Guangzhou Jinyi and Zhejiang Longsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Jinyi and Zhejiang Longsheng
The main advantage of trading using opposite Guangzhou Jinyi and Zhejiang Longsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Zhejiang Longsheng 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 Zhejiang Longsheng will offset losses from the drop in Zhejiang Longsheng's long position.Guangzhou Jinyi vs. Agricultural Bank of | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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