Correlation Between Southern PublishingMedia and Guangzhou Haige
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern PublishingMedia Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Southern PublishingMedia and Guangzhou Haige 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 Southern PublishingMedia with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Guangzhou Haige.
Diversification Opportunities for Southern PublishingMedia and Guangzhou Haige
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southern and Guangzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Guangzhou Haige
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 0.93 times more return on investment than Guangzhou Haige. However, Southern PublishingMedia Co is 1.08 times less risky than Guangzhou Haige. It trades about -0.17 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.39 per unit of risk. If you would invest 1,565 in Southern PublishingMedia Co on October 17, 2024 and sell it today you would lose (114.00) from holding Southern PublishingMedia Co or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Southern PublishingMedia |
| Guangzhou Haige Comm |
Southern PublishingMedia and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Guangzhou Haige
The main advantage of trading using opposite Southern PublishingMedia and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.The idea behind Southern PublishingMedia Co and Guangzhou Haige Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Guangzhou Haige vs. Industrial Bank Co | Guangzhou Haige vs. Southern PublishingMedia Co | Guangzhou Haige vs. Thinkingdom Media Group | Guangzhou Haige vs. Hengdian Entertainment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |