Correlation Between Guangzhou Jinyi and Hubei Yingtong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Jinyi Media and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Guangzhou Jinyi and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Hubei Yingtong.
Diversification Opportunities for Guangzhou Jinyi and Hubei Yingtong
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hubei is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Hubei Yingtong
Assuming the 90 days trading horizon Guangzhou Jinyi is expected to generate 4.38 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Guangzhou Jinyi Media is 1.66 times less risky than Hubei Yingtong. It trades about 0.06 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Hubei Yingtong Telecommunication on October 30, 2024 and sell it today you would earn a total of 467.00 from holding Hubei Yingtong Telecommunication or generate 39.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Hubei Yingtong Telec |
Guangzhou Jinyi and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Hubei Yingtong
The main advantage of trading using opposite Guangzhou Jinyi and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Guangzhou Jinyi vs. China State Construction | Guangzhou Jinyi vs. Poly Real Estate | Guangzhou Jinyi vs. China Vanke Co | Guangzhou Jinyi vs. China Merchants Shekou |
| Hubei Yingtong vs. Bus Online Co | Hubei Yingtong vs. Holitech Technology Co | Hubei Yingtong vs. Gome Telecom Equipment | Hubei Yingtong 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |