Correlation Between Guangdong Jinma and Xiamen Bank
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Xiamen Bank Co, you can compare the effects of market volatilities on Guangdong Jinma and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Xiamen Bank.
Diversification Opportunities for Guangdong Jinma and Xiamen Bank
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Xiamen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Xiamen Bank go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Xiamen Bank
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 2.37 times more return on investment than Xiamen Bank. However, Guangdong Jinma is 2.37 times more volatile than Xiamen Bank Co. It trades about 0.01 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.02 per unit of risk. If you would invest 1,647 in Guangdong Jinma Entertainment on October 28, 2024 and sell it today you would lose (33.00) from holding Guangdong Jinma Entertainment or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Xiamen Bank Co
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Xiamen Bank |
Guangdong Jinma and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Xiamen Bank
The main advantage of trading using opposite Guangdong Jinma and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Guangdong Jinma vs. Ming Yang Smart | Guangdong Jinma vs. 159681 | Guangdong Jinma vs. 159005 | Guangdong Jinma vs. Loctek Ergonomic Technology |
| Xiamen Bank vs. Tianjin Ruixin Technology | Xiamen Bank vs. Olympic Circuit Technology | Xiamen Bank vs. Chongqing Brewery Co | Xiamen Bank vs. iSoftStone Information Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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