Correlation Between Guangdong Jinma and CIMC Vehicles
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and CIMC Vehicles Co, you can compare the effects of market volatilities on Guangdong Jinma and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and CIMC Vehicles.
Diversification Opportunities for Guangdong Jinma and CIMC Vehicles
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and CIMC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Guangdong Jinma and CIMC Vehicles
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 2.3 times more return on investment than CIMC Vehicles. However, Guangdong Jinma is 2.3 times more volatile than CIMC Vehicles Co. It trades about 0.13 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.05 per unit of risk. If you would invest 1,479 in Guangdong Jinma Entertainment on September 5, 2024 and sell it today you would earn a total of 163.00 from holding Guangdong Jinma Entertainment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. CIMC Vehicles Co
Performance |
| Timeline |
| Guangdong Jinma Ente |
| CIMC Vehicles |
Guangdong Jinma and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and CIMC Vehicles
The main advantage of trading using opposite Guangdong Jinma and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
| CIMC Vehicles vs. Guangdong Jinma Entertainment | CIMC Vehicles vs. Offcn Education Technology | CIMC Vehicles vs. Shandong Publishing Media | CIMC Vehicles vs. Southern PublishingMedia 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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