Correlation Between GUOMAI Culture and Shanghai Action
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By analyzing existing cross correlation between GUOMAI Culture Media and Shanghai Action Education, you can compare the effects of market volatilities on GUOMAI Culture and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Shanghai Action.
Diversification Opportunities for GUOMAI Culture and Shanghai Action
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GUOMAI and Shanghai is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of GUOMAI Culture i.e., GUOMAI Culture and Shanghai Action go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Shanghai Action
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to under-perform the Shanghai Action. In addition to that, GUOMAI Culture is 1.84 times more volatile than Shanghai Action Education. It trades about 0.0 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about 0.1 per unit of volatility. If you would invest 3,426 in Shanghai Action Education on October 28, 2024 and sell it today you would earn a total of 126.00 from holding Shanghai Action Education or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Shanghai Action Education
Performance |
| Timeline |
| GUOMAI Culture Media |
| Shanghai Action Education |
GUOMAI Culture and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Shanghai Action
The main advantage of trading using opposite GUOMAI Culture and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| GUOMAI Culture vs. Longjian Road Bridge | GUOMAI Culture vs. Hainan Haiqi Transportation | GUOMAI Culture vs. Cabio Biotech Wuhan | GUOMAI Culture vs. Road Environment Technology |
| Shanghai Action vs. Jahen Household Products | Shanghai Action vs. GRINM Semiconductor Materials | Shanghai Action vs. Southchip Semiconductor Technology | Shanghai Action vs. Anhui Deli Household |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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