Correlation Between Guangdong Jinma and Inner Mongolia
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Inner Mongolia Furui, you can compare the effects of market volatilities on Guangdong Jinma and Inner Mongolia 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 Jinma with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Inner Mongolia.
Diversification Opportunities for Guangdong Jinma and Inner Mongolia
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Inner is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui and Guangdong Jinma 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 Jinma Entertainment are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Inner Mongolia go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Inner Mongolia
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 0.91 times more return on investment than Inner Mongolia. However, Guangdong Jinma Entertainment is 1.1 times less risky than Inner Mongolia. It trades about -0.04 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about -0.17 per unit of risk. If you would invest 1,593 in Guangdong Jinma Entertainment on October 7, 2024 and sell it today you would lose (232.00) from holding Guangdong Jinma Entertainment or give up 14.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jinma Entertainment vs. Inner Mongolia Furui
Performance |
Timeline |
Guangdong Jinma Ente |
Inner Mongolia Furui |
Guangdong Jinma and Inner Mongolia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jinma and Inner Mongolia
The main advantage of trading using opposite Guangdong Jinma and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.Guangdong Jinma vs. Holitech Technology Co | Guangdong Jinma vs. Zotye Automobile Co | Guangdong Jinma vs. Bus Online Co | Guangdong Jinma vs. Cultural Investment Holdings |
Inner Mongolia vs. Jinling Hotel Corp | Inner Mongolia vs. Hangzhou Gisway Information | Inner Mongolia vs. Offshore Oil Engineering | Inner Mongolia vs. Northking Information Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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