Correlation Between Guangzhou Jinyi and Ningbo Jintian
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Ningbo Jintian Copper, you can compare the effects of market volatilities on Guangzhou Jinyi and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Ningbo Jintian.
Diversification Opportunities for Guangzhou Jinyi and Ningbo Jintian
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Ningbo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Ningbo Jintian
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.28 times more return on investment than Ningbo Jintian. However, Guangzhou Jinyi is 1.28 times more volatile than Ningbo Jintian Copper. It trades about 0.11 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.11 per unit of risk. If you would invest 550.00 in Guangzhou Jinyi Media on October 18, 2024 and sell it today you would earn a total of 175.00 from holding Guangzhou Jinyi Media or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Ningbo Jintian Copper |
Guangzhou Jinyi and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Ningbo Jintian
The main advantage of trading using opposite Guangzhou Jinyi and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Guangzhou Jinyi vs. Eastern Communications Co | Guangzhou Jinyi vs. Runjian Communication Co | Guangzhou Jinyi vs. Anhui Jinhe Industrial | Guangzhou Jinyi vs. Ningbo Fujia Industrial |
| Ningbo Jintian vs. Threes Company Media | Ningbo Jintian vs. Guangzhou Jinyi Media | Ningbo Jintian vs. Changjiang Publishing Media | Ningbo Jintian vs. Anhui Xinhua Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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