Correlation Between Guangdong Jinma and Anhui Jinhe
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Guangdong Jinma and Anhui Jinhe 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 Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Anhui Jinhe.
Diversification Opportunities for Guangdong Jinma and Anhui Jinhe
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Anhui is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Anhui Jinhe
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.47 times more return on investment than Anhui Jinhe. However, Guangdong Jinma is 1.47 times more volatile than Anhui Jinhe Industrial. It trades about 0.02 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about -0.01 per unit of risk. If you would invest 1,542 in Guangdong Jinma Entertainment on December 1, 2024 and sell it today you would earn a total of 207.00 from holding Guangdong Jinma Entertainment or generate 13.42% 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. Anhui Jinhe Industrial
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Anhui Jinhe Industrial |
Guangdong Jinma and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Anhui Jinhe
The main advantage of trading using opposite Guangdong Jinma and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Guangdong Jinma vs. Zhongshan Public Utilities | Guangdong Jinma vs. Harbin Air Conditioning | Guangdong Jinma vs. Eastern Air Logistics | Guangdong Jinma vs. Baoding Dongli Machinery |
| Anhui Jinhe vs. Jiangsu Yueda Investment | Anhui Jinhe vs. Jointo Energy Investment | Anhui Jinhe vs. Beijing Mainstreets Investment | Anhui Jinhe vs. Liuzhou Iron Steel |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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