Correlation Between Guangzhou Jinyi and Anhui Tongguan
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Anhui Tongguan Copper, you can compare the effects of market volatilities on Guangzhou Jinyi and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Anhui Tongguan.
Diversification Opportunities for Guangzhou Jinyi and Anhui Tongguan
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Anhui is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Anhui Tongguan
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.19 times more return on investment than Anhui Tongguan. However, Guangzhou Jinyi is 1.19 times more volatile than Anhui Tongguan Copper. It trades about 0.01 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.0 per unit of risk. If you would invest 860.00 in Guangzhou Jinyi Media on October 26, 2024 and sell it today you would lose (83.00) from holding Guangzhou Jinyi Media or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Anhui Tongguan Copper |
Guangzhou Jinyi and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Anhui Tongguan
The main advantage of trading using opposite Guangzhou Jinyi and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Guangzhou Jinyi vs. China State Construction | Guangzhou Jinyi vs. Poly Real Estate | Guangzhou Jinyi vs. China Merchants Shekou | Guangzhou Jinyi vs. Huafa Industrial Co |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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