Correlation Between Shenzhen and Guangzhou Jinyi
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By analyzing existing cross correlation between Shenzhen AV Display Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Shenzhen and Guangzhou Jinyi 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 Shenzhen with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Guangzhou Jinyi.
Diversification Opportunities for Shenzhen and Guangzhou Jinyi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Shenzhen 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 Shenzhen AV Display Co are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Shenzhen i.e., Shenzhen and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Shenzhen and Guangzhou Jinyi
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.07 times more return on investment than Guangzhou Jinyi. However, Shenzhen is 1.07 times more volatile than Guangzhou Jinyi Media. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of risk. If you would invest 2,976 in Shenzhen AV Display Co on October 16, 2024 and sell it today you would lose (67.00) from holding Shenzhen AV Display Co or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Shenzhen AV Display |
| Guangzhou Jinyi Media |
Shenzhen and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Guangzhou Jinyi
The main advantage of trading using opposite Shenzhen and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Shenzhen vs. Shandong Sanyuan Biotechnology | Shenzhen vs. Ningbo MedicalSystem Biotechnology | Shenzhen vs. Universal Scientific Industrial | Shenzhen vs. Guangdong Jingyi Metal |
| Guangzhou Jinyi vs. Uroica Mining Safety | Guangzhou Jinyi vs. Hainan Mining Co | Guangzhou Jinyi vs. Shenzhen AV Display Co | Guangzhou Jinyi vs. Chengtun Mining Group |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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