Correlation Between Guangdong Jinma and Xinya Electronic
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Xinya Electronic Co, you can compare the effects of market volatilities on Guangdong Jinma and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Xinya Electronic.
Diversification Opportunities for Guangdong Jinma and Xinya Electronic
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Xinya is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Xinya Electronic go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Xinya Electronic
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jinma Entertainment is 1.62 times less risky than Xinya Electronic. The stock trades about -0.03 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,436 in Xinya Electronic Co on October 18, 2024 and sell it today you would earn a total of 6.00 from holding Xinya Electronic Co or generate 0.42% 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. Xinya Electronic Co
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Xinya Electronic |
Guangdong Jinma and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Xinya Electronic
The main advantage of trading using opposite Guangdong Jinma and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Guangdong Jinma vs. Iat Automobile Technology | Guangdong Jinma vs. Advanced Technology Materials | Guangdong Jinma vs. Chongqing Sulian Plastic | Guangdong Jinma vs. Fibocom Wireless |
| Xinya Electronic vs. Weichai Heavy Machinery | Xinya Electronic vs. Zhejiang Yinlun Machinery | Xinya Electronic vs. Hunan Tyen Machinery | Xinya Electronic vs. Sinomach General Machinery |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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