Correlation Between Advanced Technology and Guangdong Jinma
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By analyzing existing cross correlation between Advanced Technology Materials and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Advanced Technology 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 Advanced Technology with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Guangdong Jinma.
Diversification Opportunities for Advanced Technology and Guangdong Jinma
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Guangdong is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials 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 Advanced Technology 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 Advanced Technology Materials 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 Advanced Technology i.e., Advanced Technology and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Advanced Technology and Guangdong Jinma
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 0.73 times more return on investment than Guangdong Jinma. However, Advanced Technology Materials is 1.37 times less risky than Guangdong Jinma. It trades about 0.04 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.02 per unit of risk. If you would invest 864.00 in Advanced Technology Materials on October 30, 2024 and sell it today you would earn a total of 288.00 from holding Advanced Technology Materials or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Advanced Technology |
| Guangdong Jinma Ente |
Advanced Technology and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and Guangdong Jinma
The main advantage of trading using opposite Advanced Technology and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology 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.| Advanced Technology vs. Shanghai Yanpu Metal | Advanced Technology vs. Hengkang Medical Group | Advanced Technology vs. Tianshan Aluminum Group | Advanced Technology vs. Sino Platinum Metals Co |
| Guangdong Jinma vs. Nexchip Semiconductor Corp | Guangdong Jinma vs. Beijing Sanyuan Foods | Guangdong Jinma vs. Suzhou Oriental Semiconductor | Guangdong Jinma vs. Shantou Wanshun Package |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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