Correlation Between Guangdong Jingyi and Hengdian Entertainment
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Hengdian Entertainment Co, you can compare the effects of market volatilities on Guangdong Jingyi and Hengdian Entertainment 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 Guangdong Jingyi with a short position of Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Hengdian Entertainment.
Diversification Opportunities for Guangdong Jingyi and Hengdian Entertainment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Hengdian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Hengdian Entertainment
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.81 times more return on investment than Hengdian Entertainment. However, Guangdong Jingyi Metal is 1.23 times less risky than Hengdian Entertainment. It trades about 0.26 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.07 per unit of risk. If you would invest 646.00 in Guangdong Jingyi Metal on November 3, 2024 and sell it today you would earn a total of 83.00 from holding Guangdong Jingyi Metal or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Hengdian Entertainment |
Guangdong Jingyi and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Hengdian Entertainment
The main advantage of trading using opposite Guangdong Jingyi and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| Guangdong Jingyi vs. Allmed Medical Products | Guangdong Jingyi vs. Hengkang Medical Group | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Chengtun Mining Group |
| Hengdian Entertainment vs. China World Trade | Hengdian Entertainment vs. Shandong Longquan Pipeline | Hengdian Entertainment vs. Linewell Software Co | Hengdian Entertainment vs. Guangdong Jingyi Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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