Correlation Between Weihai Honglin and Guangzhou Jinyi
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By analyzing existing cross correlation between Weihai Honglin Electronic and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Guangzhou Jinyi.
Diversification Opportunities for Weihai Honglin and Guangzhou Jinyi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Weihai and Guangzhou is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Weihai Honglin and Guangzhou Jinyi
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 0.86 times more return on investment than Guangzhou Jinyi. However, Weihai Honglin Electronic is 1.16 times less risky than Guangzhou Jinyi. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.01 per unit of risk. If you would invest 1,229 in Weihai Honglin Electronic on October 12, 2024 and sell it today you would earn a total of 266.00 from holding Weihai Honglin Electronic or generate 21.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Guangzhou Jinyi Media |
Weihai Honglin and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Guangzhou Jinyi
The main advantage of trading using opposite Weihai Honglin and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. GigaDevice SemiconductorBeiji | Weihai Honglin vs. Beijing Bewinner Communications | Weihai Honglin vs. Bomesc Offshore Engineering | Weihai Honglin vs. Quectel Wireless Solutions |
| Guangzhou Jinyi vs. Weihai Honglin Electronic | Guangzhou Jinyi vs. Tongyu Communication | Guangzhou Jinyi vs. Jinlong Machinery Electronic | Guangzhou Jinyi vs. Techshine Electronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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