Correlation Between Jiangsu Yanghe and Guangdong Advertising
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Guangdong Advertising Co, you can compare the effects of market volatilities on Jiangsu Yanghe and Guangdong Advertising 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 Jiangsu Yanghe with a short position of Guangdong Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Guangdong Advertising.
Diversification Opportunities for Jiangsu Yanghe and Guangdong Advertising
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Guangdong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Guangdong Advertising Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Advertising and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Guangdong Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Advertising has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Guangdong Advertising go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Guangdong Advertising
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Guangdong Advertising. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 5.65 times less risky than Guangdong Advertising. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Advertising Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 854.00 in Guangdong Advertising Co on September 27, 2024 and sell it today you would earn a total of 1.00 from holding Guangdong Advertising Co or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Guangdong Advertising Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Guangdong Advertising |
Jiangsu Yanghe and Guangdong Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Guangdong Advertising
The main advantage of trading using opposite Jiangsu Yanghe and Guangdong Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Guangdong Advertising 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 Advertising will offset losses from the drop in Guangdong Advertising's long position.| Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. CNOOC Limited | Jiangsu Yanghe vs. Ping An Insurance |
| Guangdong Advertising vs. Emdoor Information Co | Guangdong Advertising vs. Jiangsu Yanghe Brewery | Guangdong Advertising vs. Shanghai Construction Group | Guangdong Advertising vs. Chongqing Brewery 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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