Correlation Between China Securities and Guangdong Jinma
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on China Securities and Guangdong Jinma 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 China Securities with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Guangdong Jinma.
Diversification Opportunities for China Securities and Guangdong Jinma
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente and China Securities 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 China Securities 800 are associated (or correlated) with Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of China Securities i.e., China Securities and Guangdong Jinma go up and down completely randomly.
Pair Corralation between China Securities and Guangdong Jinma
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Guangdong Jinma. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 3.2 times less risky than Guangdong Jinma. The index trades about -0.1 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,512 in Guangdong Jinma Entertainment on August 28, 2024 and sell it today you would earn a total of 144.00 from holding Guangdong Jinma Entertainment or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
China Securities and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Guangdong Jinma Entertainment
Pair trading matchups for Guangdong Jinma
Pair Trading with China Securities and Guangdong Jinma
The main advantage of trading using opposite China Securities and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Guangdong Jinma vs. Shenzhen MYS Environmental | Guangdong Jinma vs. AVIC Fund Management | Guangdong Jinma vs. Shenzhen Bingchuan Network | Guangdong Jinma vs. Penghua Shenzhen Energy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |