Correlation Between Guangzhou Tinci and Thinkingdom Media
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Thinkingdom Media Group, you can compare the effects of market volatilities on Guangzhou Tinci and Thinkingdom 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 Tinci with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Thinkingdom Media.
Diversification Opportunities for Guangzhou Tinci and Thinkingdom Media
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and Thinkingdom is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and Guangzhou Tinci 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 Tinci Materials are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Thinkingdom Media
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Thinkingdom Media. In addition to that, Guangzhou Tinci is 1.05 times more volatile than Thinkingdom Media Group. It trades about -0.05 of its total potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.01 per unit of volatility. If you would invest 2,007 in Thinkingdom Media Group on October 28, 2024 and sell it today you would lose (34.00) from holding Thinkingdom Media Group or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Thinkingdom Media Group
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Thinkingdom Media |
Guangzhou Tinci and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Thinkingdom Media
The main advantage of trading using opposite Guangzhou Tinci and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Thinkingdom 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
| Thinkingdom Media vs. Bus Online Co | Thinkingdom Media vs. Holitech Technology Co | Thinkingdom Media vs. Gome Telecom Equipment | Thinkingdom 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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