Correlation Between Guangzhou Jinyi and Kunwu Jiuding
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Guangzhou Jinyi and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Kunwu Jiuding.
Diversification Opportunities for Guangzhou Jinyi and Kunwu Jiuding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Kunwu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Kunwu Jiuding
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.52 times more return on investment than Kunwu Jiuding. However, Guangzhou Jinyi is 1.52 times more volatile than Kunwu Jiuding Investment. It trades about 0.32 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.01 per unit of risk. If you would invest 719.00 in Guangzhou Jinyi Media on September 14, 2024 and sell it today you would earn a total of 206.00 from holding Guangzhou Jinyi Media or generate 28.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Kunwu Jiuding Investment |
Guangzhou Jinyi and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Kunwu Jiuding
The main advantage of trading using opposite Guangzhou Jinyi and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Guangzhou Jinyi vs. Integrated Electronic Systems | Guangzhou Jinyi vs. Hangzhou Weiguang Electronic | Guangzhou Jinyi vs. Success Electronics | Guangzhou Jinyi vs. Shenzhen Clou Electronics |
| Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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