Correlation Between Guangzhou Jinyi and Shanghai Electric
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Shanghai Electric Group, you can compare the effects of market volatilities on Guangzhou Jinyi and Shanghai Electric 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 Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Shanghai Electric.
Diversification Opportunities for Guangzhou Jinyi and Shanghai Electric
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric 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 Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Shanghai Electric go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Shanghai Electric
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 0.77 times more return on investment than Shanghai Electric. However, Guangzhou Jinyi Media is 1.31 times less risky than Shanghai Electric. It trades about 0.32 of its potential returns per unit of risk. Shanghai Electric Group is currently generating about -0.14 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. Shanghai Electric Group
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Shanghai Electric |
Guangzhou Jinyi and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Shanghai Electric
The main advantage of trading using opposite Guangzhou Jinyi and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Shanghai Electric 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 Shanghai Electric will offset losses from the drop in Shanghai Electric'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 |
| Shanghai Electric vs. Lootom Telcovideo Network | Shanghai Electric vs. Zhejiang Yayi Metal | Shanghai Electric vs. Rising Nonferrous Metals | Shanghai Electric vs. Tianshan Aluminum Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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