Correlation Between Zhejiang Publishing and Guangzhou Jinyi
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By analyzing existing cross correlation between Zhejiang Publishing Media and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Zhejiang Publishing and Guangzhou Jinyi 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 Zhejiang Publishing with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Guangzhou Jinyi.
Diversification Opportunities for Zhejiang Publishing and Guangzhou Jinyi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Guangzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Zhejiang Publishing 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 Zhejiang Publishing Media are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Guangzhou Jinyi
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 3.28 times less risky than Guangzhou Jinyi. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Guangzhou Jinyi Media on November 6, 2024 and sell it today you would earn a total of 78.00 from holding Guangzhou Jinyi Media or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Guangzhou Jinyi Media |
Zhejiang Publishing and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Guangzhou Jinyi
The main advantage of trading using opposite Zhejiang Publishing and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Zhejiang Publishing vs. Caihong Display Devices | Zhejiang Publishing vs. CITIC Metal Co | Zhejiang Publishing vs. Sportsoul Co Ltd | Zhejiang Publishing vs. China Sports Industry |
| Guangzhou Jinyi vs. Ningbo Construction Co | Guangzhou Jinyi vs. Shandong Publishing Media | Guangzhou Jinyi vs. Threes Company Media | Guangzhou Jinyi vs. Chengdu B ray Media |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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