Correlation Between Beijing Bashi and Guangdong Jinma
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By analyzing existing cross correlation between Beijing Bashi Media and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Beijing Bashi and Guangdong Jinma 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 Beijing Bashi with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Guangdong Jinma.
Diversification Opportunities for Beijing Bashi and Guangdong Jinma
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Guangdong is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente and Beijing Bashi 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 Beijing Bashi Media are associated (or correlated) with Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Beijing Bashi and Guangdong Jinma
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 1.0 times more return on investment than Guangdong Jinma. However, Beijing Bashi is 1.0 times more volatile than Guangdong Jinma Entertainment. It trades about 0.02 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.01 per unit of risk. If you would invest 450.00 in Beijing Bashi Media on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Beijing Bashi Media or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Beijing Bashi Media vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Beijing Bashi Media |
| Guangdong Jinma Ente |
Beijing Bashi and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Guangdong Jinma
The main advantage of trading using opposite Beijing Bashi and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Guangdong Jinma 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 Jinma will offset losses from the drop in Guangdong Jinma's long position.| Beijing Bashi vs. Citic Guoan Wine | Beijing Bashi vs. Yangmei Chemical Co | Beijing Bashi vs. Anhui Gujing Distillery | Beijing Bashi vs. Guangzhou Jointas Chemical |
| Guangdong Jinma vs. Nanjing Putian Telecommunications | Guangdong Jinma vs. Shenzhen Hifuture Electric | Guangdong Jinma vs. Tianjin Realty Development | Guangdong Jinma vs. Shenyang Huitian Thermal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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