Correlation Between Guangdong Jinma and Guilin Seamild
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Guilin Seamild Foods, you can compare the effects of market volatilities on Guangdong Jinma and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Guilin Seamild.
Diversification Opportunities for Guangdong Jinma and Guilin Seamild
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Guilin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Guilin Seamild go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Guilin Seamild
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to under-perform the Guilin Seamild. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jinma Entertainment is 1.08 times less risky than Guilin Seamild. The stock trades about -0.26 of its potential returns per unit of risk. The Guilin Seamild Foods is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,732 in Guilin Seamild Foods on October 16, 2024 and sell it today you would lose (205.00) from holding Guilin Seamild Foods or give up 11.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Guilin Seamild Foods
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Guilin Seamild Foods |
Guangdong Jinma and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Guilin Seamild
The main advantage of trading using opposite Guangdong Jinma and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Guangdong Jinma vs. Threes Company Media | Guangdong Jinma vs. JiShi Media Co | Guangdong Jinma vs. Beijing Enlight Media | Guangdong Jinma vs. CICC Fund Management |
| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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