Correlation Between Guangzhou Jinyi and Xinya Electronic
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Xinya Electronic Co, you can compare the effects of market volatilities on Guangzhou Jinyi and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Xinya Electronic.
Diversification Opportunities for Guangzhou Jinyi and Xinya Electronic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Xinya is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and Xinya Electronic go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Xinya Electronic
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Jinyi Media is 1.25 times less risky than Xinya Electronic. The stock trades about -0.22 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,436 in Xinya Electronic Co on October 18, 2024 and sell it today you would earn a total of 6.00 from holding Xinya Electronic Co or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Xinya Electronic Co
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Xinya Electronic |
Guangzhou Jinyi and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Xinya Electronic
The main advantage of trading using opposite Guangzhou Jinyi and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 |
| Xinya Electronic vs. Weichai Heavy Machinery | Xinya Electronic vs. Zhejiang Yinlun Machinery | Xinya Electronic vs. Hunan Tyen Machinery | Xinya Electronic vs. Sinomach General 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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