Correlation Between Guangzhou Jinyi and Tongding Interconnection
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Tongding Interconnection Information, you can compare the effects of market volatilities on Guangzhou Jinyi and Tongding Interconnection 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 Jinyi with a short position of Tongding Interconnection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Tongding Interconnection.
Diversification Opportunities for Guangzhou Jinyi and Tongding Interconnection
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Tongding is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Tongding Interconnection Infor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongding Interconnection and Guangzhou Jinyi 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 Jinyi Media are associated (or correlated) with Tongding Interconnection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongding Interconnection has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Tongding Interconnection go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Tongding Interconnection
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to under-perform the Tongding Interconnection. In addition to that, Guangzhou Jinyi is 1.11 times more volatile than Tongding Interconnection Information. It trades about 0.0 of its total potential returns per unit of risk. Tongding Interconnection Information is currently generating about 0.01 per unit of volatility. If you would invest 482.00 in Tongding Interconnection Information on October 16, 2024 and sell it today you would lose (62.00) from holding Tongding Interconnection Information or give up 12.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Tongding Interconnection Infor
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Tongding Interconnection |
Guangzhou Jinyi and Tongding Interconnection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Tongding Interconnection
The main advantage of trading using opposite Guangzhou Jinyi and Tongding Interconnection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Tongding Interconnection 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 Tongding Interconnection will offset losses from the drop in Tongding Interconnection's long position.| Guangzhou Jinyi vs. Uroica Mining Safety | Guangzhou Jinyi vs. Hainan Mining Co | Guangzhou Jinyi vs. Shenzhen AV Display Co | Guangzhou Jinyi vs. Chengtun Mining Group |
| Tongding Interconnection vs. JiShi Media Co | Tongding Interconnection vs. Guangzhou Jinyi Media | Tongding Interconnection vs. Omnijoi Media Corp | Tongding Interconnection vs. Ciwen Media 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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