Correlation Between Chengdu B and GUOMAI Culture
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By analyzing existing cross correlation between Chengdu B ray Media and GUOMAI Culture Media, you can compare the effects of market volatilities on Chengdu B and GUOMAI Culture 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 Chengdu B with a short position of GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and GUOMAI Culture.
Diversification Opportunities for Chengdu B and GUOMAI Culture
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and GUOMAI is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Chengdu B i.e., Chengdu B and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Chengdu B and GUOMAI Culture
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the GUOMAI Culture. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu B ray Media is 1.61 times less risky than GUOMAI Culture. The stock trades about 0.0 of its potential returns per unit of risk. The GUOMAI Culture Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,010 in GUOMAI Culture Media on October 29, 2024 and sell it today you would earn a total of 618.00 from holding GUOMAI Culture Media or generate 30.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. GUOMAI Culture Media
Performance |
| Timeline |
| Chengdu B ray |
| GUOMAI Culture Media |
Chengdu B and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and GUOMAI Culture
The main advantage of trading using opposite Chengdu B and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Chengdu B vs. Bus Online Co | Chengdu B vs. Holitech Technology Co | Chengdu B vs. Gome Telecom Equipment | Chengdu B vs. Cultural Investment Holdings |
| GUOMAI Culture vs. Beijing YanDong MicroElectronic | GUOMAI Culture vs. Guangzhou Zhujiang Brewery | GUOMAI Culture vs. Shantou Wanshun Package | GUOMAI Culture vs. Fuzhou Rockchip Electronics |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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