Correlation Between Guangzhou Haige and Dook Media
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By analyzing existing cross correlation between Guangzhou Haige Communications and Dook Media Group, you can compare the effects of market volatilities on Guangzhou Haige and Dook Media 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 Haige with a short position of Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Dook Media.
Diversification Opportunities for Guangzhou Haige and Dook Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Dook is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group and Guangzhou Haige 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 Haige Communications are associated (or correlated) with Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Dook Media go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Dook Media
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Dook Media. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.29 times less risky than Dook Media. The stock trades about -0.19 of its potential returns per unit of risk. The Dook Media Group is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Dook Media Group on October 29, 2024 and sell it today you would lose (29.00) from holding Dook Media Group or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Dook Media Group
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Dook Media Group |
Guangzhou Haige and Dook Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Dook Media
The main advantage of trading using opposite Guangzhou Haige and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media's long position.| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
| Dook Media vs. Bus Online Co | Dook Media vs. Holitech Technology Co | Dook Media vs. Gome Telecom Equipment | Dook Media vs. Cultural Investment Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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