Correlation Between Zhejiang Satellite and Guangzhou Jinyi
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By analyzing existing cross correlation between Zhejiang Satellite Petrochemical and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Zhejiang Satellite and Guangzhou Jinyi 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 Zhejiang Satellite with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Satellite and Guangzhou Jinyi.
Diversification Opportunities for Zhejiang Satellite and Guangzhou Jinyi
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Guangzhou is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Satellite Petrochemic and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Zhejiang Satellite 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 Zhejiang Satellite Petrochemical are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Zhejiang Satellite i.e., Zhejiang Satellite and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Zhejiang Satellite and Guangzhou Jinyi
Assuming the 90 days trading horizon Zhejiang Satellite Petrochemical is expected to generate 0.56 times more return on investment than Guangzhou Jinyi. However, Zhejiang Satellite Petrochemical is 1.77 times less risky than Guangzhou Jinyi. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.01 per unit of risk. If you would invest 1,586 in Zhejiang Satellite Petrochemical on December 4, 2024 and sell it today you would earn a total of 566.00 from holding Zhejiang Satellite Petrochemical or generate 35.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Satellite Petrochemic vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Zhejiang Satellite |
| Guangzhou Jinyi Media |
Zhejiang Satellite and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Satellite and Guangzhou Jinyi
The main advantage of trading using opposite Zhejiang Satellite and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Satellite position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Zhejiang Satellite vs. Cultural Investment Holdings | Zhejiang Satellite vs. Tieling Newcity Investment | Zhejiang Satellite vs. Postal Savings Bank | Zhejiang Satellite vs. Everdisplay Optronics Shanghai |
| Guangzhou Jinyi vs. Shanghai Yaoji Playing | Guangzhou Jinyi vs. Dhc Software Co | Guangzhou Jinyi vs. Union Semiconductor Co | Guangzhou Jinyi vs. Lander Sports Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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