Correlation Between Cinda Securities and Guangdong Advertising
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By analyzing existing cross correlation between Cinda Securities Co and Guangdong Advertising Co, you can compare the effects of market volatilities on Cinda Securities and Guangdong Advertising 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 Cinda Securities with a short position of Guangdong Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Guangdong Advertising.
Diversification Opportunities for Cinda Securities and Guangdong Advertising
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cinda and Guangdong is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Guangdong Advertising Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Advertising and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Guangdong Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Advertising has no effect on the direction of Cinda Securities i.e., Cinda Securities and Guangdong Advertising go up and down completely randomly.
Pair Corralation between Cinda Securities and Guangdong Advertising
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.55 times more return on investment than Guangdong Advertising. However, Cinda Securities Co is 1.82 times less risky than Guangdong Advertising. It trades about -0.32 of its potential returns per unit of risk. Guangdong Advertising Co is currently generating about -0.46 per unit of risk. If you would invest 1,573 in Cinda Securities Co on October 14, 2024 and sell it today you would lose (232.00) from holding Cinda Securities Co or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Guangdong Advertising Co
Performance |
| Timeline |
| Cinda Securities |
| Guangdong Advertising |
Cinda Securities and Guangdong Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Guangdong Advertising
The main advantage of trading using opposite Cinda Securities and Guangdong Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Guangdong Advertising 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 Advertising will offset losses from the drop in Guangdong Advertising's long position.| Cinda Securities vs. Zijin Mining Group | Cinda Securities vs. Innovative Medical Management | Cinda Securities vs. Medprin Regenerative Medical | Cinda Securities vs. Shenzhen Silver Basis |
| Guangdong Advertising vs. China Life Insurance | Guangdong Advertising vs. Cinda Securities Co | Guangdong Advertising vs. Piotech Inc A | Guangdong Advertising vs. Dongxing Sec 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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