Correlation Between Beijing Bashi and Guangzhou Jinyi
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By analyzing existing cross correlation between Beijing Bashi Media and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Beijing Bashi 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 Beijing Bashi with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Guangzhou Jinyi.
Diversification Opportunities for Beijing Bashi and Guangzhou Jinyi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media 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 Beijing Bashi 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 Beijing Bashi Media 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 Beijing Bashi i.e., Beijing Bashi and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Beijing Bashi and Guangzhou Jinyi
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.39 times less return on investment than Guangzhou Jinyi. In addition to that, Beijing Bashi is 1.01 times more volatile than Guangzhou Jinyi Media. It trades about 0.2 of its total potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.28 per unit of volatility. If you would invest 695.00 in Guangzhou Jinyi Media on September 19, 2024 and sell it today you would earn a total of 182.00 from holding Guangzhou Jinyi Media or generate 26.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.65% |
Values | Daily Returns |
Beijing Bashi Media vs. Guangzhou Jinyi Media
Performance |
Timeline |
Beijing Bashi Media |
Guangzhou Jinyi Media |
Beijing Bashi and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Bashi and Guangzhou Jinyi
The main advantage of trading using opposite Beijing Bashi and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi 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.Beijing Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
Guangzhou Jinyi vs. Industrial and Commercial | Guangzhou Jinyi vs. China Construction Bank | Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Bank of China |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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