Correlation Between GUOMAI Culture and Shanghai Suochen
Specify exactly 2 symbols:
By analyzing existing cross correlation between GUOMAI Culture Media and Shanghai Suochen Information, you can compare the effects of market volatilities on GUOMAI Culture and Shanghai Suochen 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 Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Shanghai Suochen.
Diversification Opportunities for GUOMAI Culture and Shanghai Suochen
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GUOMAI and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf 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 Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of GUOMAI Culture i.e., GUOMAI Culture and Shanghai Suochen go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Shanghai Suochen
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to under-perform the Shanghai Suochen. But the stock apears to be less risky and, when comparing its historical volatility, GUOMAI Culture Media is 1.21 times less risky than Shanghai Suochen. The stock trades about -0.03 of its potential returns per unit of risk. The Shanghai Suochen Information is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,843 in Shanghai Suochen Information on October 29, 2024 and sell it today you would earn a total of 520.00 from holding Shanghai Suochen Information or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Shanghai Suochen Information
Performance |
| Timeline |
| GUOMAI Culture Media |
| Shanghai Suochen Inf |
GUOMAI Culture and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Shanghai Suochen
The main advantage of trading using opposite GUOMAI Culture and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture position performs unexpectedly, Shanghai Suochen 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 Suochen will offset losses from the drop in Shanghai Suochen's long position.| GUOMAI Culture vs. Beijing YanDong MicroElectronic | GUOMAI Culture vs. Guangzhou Zhujiang Brewery | GUOMAI Culture vs. Shantou Wanshun Package | GUOMAI Culture vs. Fuzhou Rockchip Electronics |
| Shanghai Suochen vs. Bank of China | Shanghai Suochen vs. Kweichow Moutai Co | Shanghai Suochen vs. PetroChina Co Ltd | Shanghai Suochen vs. Bank of Communications |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |