Correlation Between Industrial and Guangdong Jinma
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By analyzing existing cross correlation between Industrial and Commercial and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guangdong Jinma.
Diversification Opportunities for Industrial and Guangdong Jinma
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Guangdong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Industrial and Guangdong Jinma
Assuming the 90 days trading horizon Industrial is expected to generate 33.53 times less return on investment than Guangdong Jinma. But when comparing it to its historical volatility, Industrial and Commercial is 4.96 times less risky than Guangdong Jinma. It trades about 0.02 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,479 in Guangdong Jinma Entertainment on September 3, 2024 and sell it today you would earn a total of 182.00 from holding Guangdong Jinma Entertainment or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Industrial and Commercial |
| Guangdong Jinma Ente |
Industrial and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guangdong Jinma
The main advantage of trading using opposite Industrial and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Tengda Construction Group | Industrial vs. Hongrun Construction Group | Industrial vs. HUAQIN TECHNOLOGY LTD | Industrial vs. Sinomach General Machinery |
| Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. Industrial and Commercial | Guangdong Jinma vs. China Life Insurance |
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 Stocks Directory module to find actively traded stocks across global markets.
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