Correlation Between Guangdong Jinma and Do Fluoride
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Guangdong Jinma and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Do Fluoride.
Diversification Opportunities for Guangdong Jinma and Do Fluoride
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and 002407 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Do Fluoride go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Do Fluoride
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.29 times more return on investment than Do Fluoride. However, Guangdong Jinma is 1.29 times more volatile than Do Fluoride Chemicals Co. It trades about 0.02 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.06 per unit of risk. If you would invest 1,653 in Guangdong Jinma Entertainment on November 5, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Jinma Entertainment or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Do Fluoride Chemicals |
Guangdong Jinma and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Do Fluoride
The main advantage of trading using opposite Guangdong Jinma and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Guangdong Jinma vs. Western Metal Materials | Guangdong Jinma vs. Ye Chiu Metal | Guangdong Jinma vs. Postal Savings Bank | Guangdong Jinma vs. Financial Street Holdings |
| Do Fluoride vs. Shandong Intco Medical | Do Fluoride vs. Chongqing Changan Automobile | Do Fluoride vs. APT Medical | Do Fluoride vs. Ping An 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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