Correlation Between Hithink RoyalFlush and Guangdong Jinming
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By analyzing existing cross correlation between Hithink RoyalFlush Info and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Hithink RoyalFlush and Guangdong Jinming 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 Hithink RoyalFlush with a short position of Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hithink RoyalFlush and Guangdong Jinming.
Diversification Opportunities for Hithink RoyalFlush and Guangdong Jinming
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hithink and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hithink RoyalFlush Info and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming and Hithink RoyalFlush 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 Hithink RoyalFlush Info are associated (or correlated) with Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Hithink RoyalFlush i.e., Hithink RoyalFlush and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Hithink RoyalFlush and Guangdong Jinming
Assuming the 90 days trading horizon Hithink RoyalFlush Info is expected to generate 1.21 times more return on investment than Guangdong Jinming. However, Hithink RoyalFlush is 1.21 times more volatile than Guangdong Jinming Machinery. It trades about 0.08 of its potential returns per unit of risk. Guangdong Jinming Machinery is currently generating about 0.03 per unit of risk. If you would invest 9,972 in Hithink RoyalFlush Info on September 4, 2024 and sell it today you would earn a total of 22,722 from holding Hithink RoyalFlush Info or generate 227.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hithink RoyalFlush Info vs. Guangdong Jinming Machinery
Performance |
| Timeline |
| Hithink RoyalFlush Info |
| Guangdong Jinming |
Hithink RoyalFlush and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hithink RoyalFlush and Guangdong Jinming
The main advantage of trading using opposite Hithink RoyalFlush and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hithink RoyalFlush position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Hithink RoyalFlush vs. Guangdong Marubi Biotechnology | Hithink RoyalFlush vs. StarPower Semiconductor | Hithink RoyalFlush vs. Shanghai Jinfeng Wine | Hithink RoyalFlush vs. Liaoning Chengda Biotechnology |
| Guangdong Jinming vs. Chengdu Kanghua Biological | Guangdong Jinming vs. Beijing Wantai Biological | Guangdong Jinming vs. Suzhou Novoprotein Scientific | Guangdong Jinming vs. Aluminum Corp of |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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