Correlation Between GUOMAI Culture and China Asset
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By analyzing existing cross correlation between GUOMAI Culture Media and China Asset Management, you can compare the effects of market volatilities on GUOMAI Culture and China Asset 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 GUOMAI Culture with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and China Asset.
Diversification Opportunities for GUOMAI Culture and China Asset
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GUOMAI and China is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and GUOMAI Culture 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 GUOMAI Culture Media are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of GUOMAI Culture i.e., GUOMAI Culture and China Asset go up and down completely randomly.
Pair Corralation between GUOMAI Culture and China Asset
Assuming the 90 days trading horizon GUOMAI Culture is expected to generate 2.31 times less return on investment than China Asset. In addition to that, GUOMAI Culture is 3.02 times more volatile than China Asset Management. It trades about 0.06 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.45 per unit of volatility. If you would invest 359.00 in China Asset Management on November 1, 2024 and sell it today you would earn a total of 37.00 from holding China Asset Management or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. China Asset Management
Performance |
| Timeline |
| GUOMAI Culture Media |
| China Asset Management |
GUOMAI Culture and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and China Asset
The main advantage of trading using opposite GUOMAI Culture and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| GUOMAI Culture vs. Bus Online Co | GUOMAI Culture vs. Holitech Technology Co | GUOMAI Culture vs. Gome Telecom Equipment | GUOMAI Culture vs. Cultural Investment Holdings |
| China Asset vs. Hunan Mendale Hometextile | China Asset vs. Tianshan Aluminum Group | China Asset vs. Ziel Home Furnishing | China Asset vs. Sino Platinum Metals 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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