Correlation Between Guangzhou Zhujiang and Guangdong Jinma
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Guangdong Jinma.
Diversification Opportunities for Guangzhou Zhujiang and Guangdong Jinma
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Guangdong is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Guangdong Jinma
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.51 times more return on investment than Guangdong Jinma. However, Guangzhou Zhujiang Brewery is 1.95 times less risky than Guangdong Jinma. It trades about 0.04 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.02 per unit of risk. If you would invest 772.00 in Guangzhou Zhujiang Brewery on September 28, 2024 and sell it today you would earn a total of 215.00 from holding Guangzhou Zhujiang Brewery or generate 27.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Guangdong Jinma Ente |
Guangzhou Zhujiang and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Guangdong Jinma
The main advantage of trading using opposite Guangzhou Zhujiang and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. BYD Co Ltd | Guangzhou Zhujiang vs. China Mobile Limited | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. Industrial and Commercial |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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