Correlation Between Guangdong Advertising and Jiangsu Seagull
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By analyzing existing cross correlation between Guangdong Advertising Co and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Guangdong Advertising and Jiangsu Seagull 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 Advertising with a short position of Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Jiangsu Seagull.
Diversification Opportunities for Guangdong Advertising and Jiangsu Seagull
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising Co and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and Guangdong Advertising 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 Advertising Co are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Guangdong Advertising i.e., Guangdong Advertising and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Jiangsu Seagull
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to generate 1.1 times more return on investment than Jiangsu Seagull. However, Guangdong Advertising is 1.1 times more volatile than Jiangsu Seagull Cooling. It trades about 0.14 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.0 per unit of risk. If you would invest 506.00 in Guangdong Advertising Co on September 3, 2024 and sell it today you would earn a total of 350.00 from holding Guangdong Advertising Co or generate 69.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Guangdong Advertising |
| Jiangsu Seagull Cooling |
Guangdong Advertising and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Jiangsu Seagull
The main advantage of trading using opposite Guangdong Advertising and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Guangdong Advertising vs. Guocheng Mining Co | Guangdong Advertising vs. Guangzhou Haige Communications | Guangdong Advertising vs. FSPG Hi Tech Co | Guangdong Advertising vs. Sunwave Communications Co |
| Jiangsu Seagull vs. Ningbo Homelink Eco iTech | Jiangsu Seagull vs. Nanjing OLO Home | Jiangsu Seagull vs. Mengtian Home Group | Jiangsu Seagull vs. Caihong Display Devices |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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