Correlation Between Do Fluoride and Guangdong Jinma
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Do Fluoride and Guangdong Jinma 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 Do Fluoride with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Guangdong Jinma.
Diversification Opportunities for Do Fluoride and Guangdong Jinma
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002407 and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente and Do Fluoride 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 Do Fluoride Chemicals Co are associated (or correlated) with Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Do Fluoride i.e., Do Fluoride and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Do Fluoride and Guangdong Jinma
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the Guangdong Jinma. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 1.28 times less risky than Guangdong Jinma. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,547 in Guangdong Jinma Entertainment on September 28, 2024 and sell it today you would earn a total of 4.00 from holding Guangdong Jinma Entertainment or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Guangdong Jinma Ente |
Do Fluoride and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Guangdong Jinma
The main advantage of trading using opposite Do Fluoride and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Guangdong Jinma 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 Jinma will offset losses from the drop in Guangdong Jinma's long position.| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
| Guangdong Jinma vs. Ningbo Jianan Electronics | Guangdong Jinma vs. Eastroc Beverage Group | Guangdong Jinma vs. Guangzhou Zhujiang Brewery | Guangdong Jinma vs. Do Fluoride Chemicals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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