Correlation Between Guangzhou Jointas and Beijing Enlight
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Beijing Enlight Media, you can compare the effects of market volatilities on Guangzhou Jointas and Beijing Enlight 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 Jointas with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Beijing Enlight.
Diversification Opportunities for Guangzhou Jointas and Beijing Enlight
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Beijing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and Guangzhou Jointas 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 Jointas Chemical are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Beijing Enlight go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Beijing Enlight
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 1.11 times more return on investment than Beijing Enlight. However, Guangzhou Jointas is 1.11 times more volatile than Beijing Enlight Media. It trades about 0.05 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about -0.01 per unit of risk. If you would invest 515.00 in Guangzhou Jointas Chemical on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Guangzhou Jointas Chemical or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Beijing Enlight Media
Performance |
| Timeline |
| Guangzhou Jointas |
| Beijing Enlight Media |
Guangzhou Jointas and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Beijing Enlight
The main advantage of trading using opposite Guangzhou Jointas and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| Beijing Enlight vs. China State Construction | Beijing Enlight vs. Poly Real Estate | Beijing Enlight vs. China Vanke Co | Beijing Enlight vs. China Merchants Shekou |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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