Correlation Between Guangzhou Jinyi and Suzhou Douson
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Suzhou Douson Drilling, you can compare the effects of market volatilities on Guangzhou Jinyi and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Suzhou Douson.
Diversification Opportunities for Guangzhou Jinyi and Suzhou Douson
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Suzhou Douson go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Suzhou Douson
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.01 times more return on investment than Suzhou Douson. However, Guangzhou Jinyi is 1.01 times more volatile than Suzhou Douson Drilling. It trades about -0.01 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.01 per unit of risk. If you would invest 943.00 in Guangzhou Jinyi Media on August 25, 2024 and sell it today you would lose (203.00) from holding Guangzhou Jinyi Media or give up 21.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Suzhou Douson Drilling |
Guangzhou Jinyi and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Suzhou Douson
The main advantage of trading using opposite Guangzhou Jinyi and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Industrial and Commercial | Guangzhou Jinyi vs. Bank of China | Guangzhou Jinyi vs. PetroChina Co Ltd |
| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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