Correlation Between Shenzhen Topway and Guangzhou Jinyi
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By analyzing existing cross correlation between Shenzhen Topway Video and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Shenzhen Topway 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 Shenzhen Topway with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Guangzhou Jinyi.
Diversification Opportunities for Shenzhen Topway and Guangzhou Jinyi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Guangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video 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 Shenzhen Topway 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 Shenzhen Topway Video 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 Shenzhen Topway i.e., Shenzhen Topway and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Guangzhou Jinyi
Assuming the 90 days trading horizon Shenzhen Topway is expected to generate 1.69 times less return on investment than Guangzhou Jinyi. In addition to that, Shenzhen Topway is 1.16 times more volatile than Guangzhou Jinyi Media. It trades about 0.15 of its total potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.29 per unit of volatility. If you would invest 705.00 in Guangzhou Jinyi Media on September 13, 2024 and sell it today you would earn a total of 183.00 from holding Guangzhou Jinyi Media or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Shenzhen Topway Video |
| Guangzhou Jinyi Media |
Shenzhen Topway and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Guangzhou Jinyi
The main advantage of trading using opposite Shenzhen Topway and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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.| Shenzhen Topway vs. Hua Xia Bank | Shenzhen Topway vs. GigaDevice SemiconductorBeiji | Shenzhen Topway vs. Mango Excellent Media | Shenzhen Topway vs. GRINM Semiconductor Materials |
| Guangzhou Jinyi vs. PKU HealthCare Corp | Guangzhou Jinyi vs. Shenzhen Topway Video | Guangzhou Jinyi vs. Kuangda Technology Group | Guangzhou Jinyi vs. Niutech Environment 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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