Correlation Between Guangzhou Jointas and Beijing Bashi
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Beijing Bashi Media, you can compare the effects of market volatilities on Guangzhou Jointas and Beijing Bashi 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 Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Beijing Bashi.
Diversification Opportunities for Guangzhou Jointas and Beijing Bashi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi 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 Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Beijing Bashi go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Beijing Bashi
Assuming the 90 days trading horizon Guangzhou Jointas is expected to generate 2.11 times less return on investment than Beijing Bashi. But when comparing it to its historical volatility, Guangzhou Jointas Chemical is 1.13 times less risky than Beijing Bashi. It trades about 0.07 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Beijing Bashi Media on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Beijing Bashi Media or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Beijing Bashi Media
Performance |
| Timeline |
| Guangzhou Jointas |
| Beijing Bashi Media |
Guangzhou Jointas and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Beijing Bashi
The main advantage of trading using opposite Guangzhou Jointas and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Rongsheng Petrochemical Co | Guangzhou Jointas vs. Hoshine Silicon Ind |
| Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. China Mobile Limited | Beijing Bashi vs. Industrial and Commercial | Beijing Bashi vs. China Life Insurance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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