Correlation Between Guangzhou Seagull and Thinkingdom Media
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Thinkingdom Media Group, you can compare the effects of market volatilities on Guangzhou Seagull and Thinkingdom Media 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 Seagull with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Thinkingdom Media.
Diversification Opportunities for Guangzhou Seagull and Thinkingdom Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Thinkingdom is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and Guangzhou Seagull 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 Seagull Kitchen are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Thinkingdom Media
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Thinkingdom Media. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Seagull Kitchen is 1.02 times less risky than Thinkingdom Media. The stock trades about -0.02 of its potential returns per unit of risk. The Thinkingdom Media Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,937 in Thinkingdom Media Group on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Thinkingdom Media Group or generate 15.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Thinkingdom Media Group
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Thinkingdom Media |
Guangzhou Seagull and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Thinkingdom Media
The main advantage of trading using opposite Guangzhou Seagull and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Guangzhou Seagull vs. Sunwave Communications Co | Guangzhou Seagull vs. Tongyu Communication | Guangzhou Seagull vs. Iat Automobile Technology | Guangzhou Seagull vs. Andon Health Co |
| Thinkingdom Media vs. Gansu Jiu Steel | Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. Aba Chemicals Corp | Thinkingdom Media vs. Loctek Ergonomic 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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