Correlation Between Shijiazhuang Tonhe and Guangzhou Jinyi
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By analyzing existing cross correlation between Shijiazhuang Tonhe Electronics and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Shijiazhuang Tonhe and Guangzhou Jinyi 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 Shijiazhuang Tonhe with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Tonhe and Guangzhou Jinyi.
Diversification Opportunities for Shijiazhuang Tonhe and Guangzhou Jinyi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shijiazhuang and Guangzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Tonhe Electronics and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe Electronics are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Shijiazhuang Tonhe i.e., Shijiazhuang Tonhe and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Shijiazhuang Tonhe and Guangzhou Jinyi
Assuming the 90 days trading horizon Shijiazhuang Tonhe Electronics is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Shijiazhuang Tonhe Electronics is 1.19 times less risky than Guangzhou Jinyi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 745.00 in Guangzhou Jinyi Media on September 27, 2024 and sell it today you would earn a total of 54.00 from holding Guangzhou Jinyi Media or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shijiazhuang Tonhe Electronics vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Shijiazhuang Tonhe |
| Guangzhou Jinyi Media |
Shijiazhuang Tonhe and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shijiazhuang Tonhe and Guangzhou Jinyi
The main advantage of trading using opposite Shijiazhuang Tonhe and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Tonhe position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Shijiazhuang Tonhe vs. Shenzhen Centralcon Investment | Shijiazhuang Tonhe vs. Bomin Electronics Co | Shijiazhuang Tonhe vs. Hubei Geoway Investment | Shijiazhuang Tonhe vs. Fuzhou Rockchip Electronics |
| Guangzhou Jinyi vs. Cultural Investment Holdings | Guangzhou Jinyi vs. Gome Telecom Equipment | Guangzhou Jinyi vs. Bus Online Co | Guangzhou Jinyi vs. Holitech Technology Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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