Correlation Between Guangdong Jinma and Shenzhen MYS
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Guangdong Jinma and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Shenzhen MYS.
Diversification Opportunities for Guangdong Jinma and Shenzhen MYS
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Shenzhen MYS
Assuming the 90 days trading horizon Guangdong Jinma is expected to generate 1.38 times less return on investment than Shenzhen MYS. In addition to that, Guangdong Jinma is 1.06 times more volatile than Shenzhen MYS Environmental. It trades about 0.11 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.16 per unit of volatility. If you would invest 325.00 in Shenzhen MYS Environmental on August 28, 2024 and sell it today you would earn a total of 47.00 from holding Shenzhen MYS Environmental or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Shenzhen MYS Environ |
Guangdong Jinma and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Shenzhen MYS
The main advantage of trading using opposite Guangdong Jinma and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Guangdong Jinma vs. Shenzhen MYS Environmental | Guangdong Jinma vs. AVIC Fund Management | Guangdong Jinma vs. Shenzhen Bingchuan Network | Guangdong Jinma vs. Penghua Shenzhen Energy |
| Shenzhen MYS vs. Gansu Yasheng Industrial | Shenzhen MYS vs. Integrated Electronic Systems | Shenzhen MYS vs. Chengtun Mining Group | Shenzhen MYS vs. Zhejiang Yayi Metal |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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