Correlation Between Dook Media and Guangdong Jingyi
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By analyzing existing cross correlation between Dook Media Group and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Dook Media and Guangdong Jingyi 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 Dook Media with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dook Media and Guangdong Jingyi.
Diversification Opportunities for Dook Media and Guangdong Jingyi
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dook and Guangdong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dook Media Group and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Dook Media 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 Dook Media Group are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Dook Media i.e., Dook Media and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Dook Media and Guangdong Jingyi
Assuming the 90 days trading horizon Dook Media Group is expected to under-perform the Guangdong Jingyi. In addition to that, Dook Media is 1.05 times more volatile than Guangdong Jingyi Metal. It trades about -0.49 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.34 per unit of volatility. If you would invest 789.00 in Guangdong Jingyi Metal on October 14, 2024 and sell it today you would lose (163.00) from holding Guangdong Jingyi Metal or give up 20.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dook Media Group vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Dook Media Group |
| Guangdong Jingyi Metal |
Dook Media and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dook Media and Guangdong Jingyi
The main advantage of trading using opposite Dook Media and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dook Media position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Dook Media vs. King Strong New Material | Dook Media vs. Huizhou Speed Wireless | Dook Media vs. Advanced Technology Materials | Dook Media vs. Xiangyang Automobile Bearing |
| Guangdong Jingyi vs. Anhui Gujing Distillery | Guangdong Jingyi vs. Beijing HuaYuanYiTong Thermal | Guangdong Jingyi vs. Guocheng Mining Co | Guangdong Jingyi vs. Hainan Mining 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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