Correlation Between Oriental Times and Gem Year
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By analyzing existing cross correlation between Oriental Times Media and Gem Year Industrial Co, you can compare the effects of market volatilities on Oriental Times and Gem Year 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 Oriental Times with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Gem Year.
Diversification Opportunities for Oriental Times and Gem Year
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oriental and Gem is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Oriental Times 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 Oriental Times Media are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Oriental Times i.e., Oriental Times and Gem Year go up and down completely randomly.
Pair Corralation between Oriental Times and Gem Year
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.35 times more return on investment than Gem Year. However, Oriental Times is 1.35 times more volatile than Gem Year Industrial Co. It trades about 0.13 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.05 per unit of risk. If you would invest 233.00 in Oriental Times Media on September 3, 2024 and sell it today you would earn a total of 219.00 from holding Oriental Times Media or generate 93.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Gem Year Industrial Co
Performance |
| Timeline |
| Oriental Times Media |
| Gem Year Industrial |
Oriental Times and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Gem Year
The main advantage of trading using opposite Oriental Times and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Oriental Times vs. Agricultural Bank of | Oriental Times vs. China Construction Bank | Oriental Times vs. Postal Savings Bank | Oriental Times vs. Bank of Communications |
| Gem Year vs. Cultural Investment Holdings | Gem Year vs. Gome Telecom Equipment | Gem Year vs. Bus Online Co | Gem Year vs. Holitech Technology Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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