Correlation Between Guangdong Jinma and Shandong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jinma Entertainment and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on Guangdong Jinma and Shandong 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 Guangdong Jinma with a short position of Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Shandong.
Diversification Opportunities for Guangdong Jinma and Shandong
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shandong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed and Guangdong Jinma 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 Guangdong Jinma Entertainment are associated (or correlated) with Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Shandong go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Shandong
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.78 times more return on investment than Shandong. However, Guangdong Jinma is 1.78 times more volatile than Shandong Hi Speed RoadBridge. It trades about 0.01 of its potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about 0.0 per unit of risk. If you would invest 1,726 in Guangdong Jinma Entertainment on September 5, 2024 and sell it today you would lose (84.00) from holding Guangdong Jinma Entertainment or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Shandong Hi Speed |
Guangdong Jinma and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Shandong
The main advantage of trading using opposite Guangdong Jinma and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| Guangdong Jinma vs. BeiGene | Guangdong Jinma vs. Kweichow Moutai Co | Guangdong Jinma vs. Beijing Roborock Technology | Guangdong Jinma vs. G bits Network Technology |
| Shandong vs. Guangdong Jinma Entertainment | Shandong vs. Zhejiang Daily Media | Shandong vs. Duzhe Publishing Media | Shandong vs. JiShi Media 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |