Correlation Between Guangzhou Jinyi and China State
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By analyzing existing cross correlation between Guangzhou Jinyi Media and China State Construction, you can compare the effects of market volatilities on Guangzhou Jinyi and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and China State.
Diversification Opportunities for Guangzhou Jinyi and China State
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and China is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and China State go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and China State
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to under-perform the China State. In addition to that, Guangzhou Jinyi is 1.76 times more volatile than China State Construction. It trades about -0.02 of its total potential returns per unit of risk. China State Construction is currently generating about 0.06 per unit of volatility. If you would invest 479.00 in China State Construction on September 4, 2024 and sell it today you would earn a total of 130.00 from holding China State Construction or generate 27.14% 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. China State Construction
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| China State Construction |
Guangzhou Jinyi and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and China State
The main advantage of trading using opposite Guangzhou Jinyi and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, China State 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 China State will offset losses from the drop in China State'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 |
| China State vs. Jinhe Biotechnology Co | China State vs. Jiangsu GDK Biotechnology | China State vs. Guangdong Marubi Biotechnology | China State vs. Nanxing Furniture Machinery |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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