Correlation Between JiShi Media and Guangzhou Jinyi
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By analyzing existing cross correlation between JiShi Media Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on JiShi Media 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 JiShi Media with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Guangzhou Jinyi.
Diversification Opportunities for JiShi Media and Guangzhou Jinyi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JiShi and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co 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 JiShi Media 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 JiShi Media Co 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 JiShi Media i.e., JiShi Media and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between JiShi Media and Guangzhou Jinyi
Assuming the 90 days trading horizon JiShi Media Co is expected to generate 1.33 times more return on investment than Guangzhou Jinyi. However, JiShi Media is 1.33 times more volatile than Guangzhou Jinyi Media. It trades about 0.25 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.15 per unit of risk. If you would invest 105.00 in JiShi Media Co on September 3, 2024 and sell it today you would earn a total of 80.00 from holding JiShi Media Co or generate 76.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| JiShi Media |
| Guangzhou Jinyi Media |
JiShi Media and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Guangzhou Jinyi
The main advantage of trading using opposite JiShi Media and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media 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.| JiShi Media vs. Gansu Jiu Steel | JiShi Media vs. Ming Yang Smart | JiShi Media vs. Aba Chemicals Corp | JiShi Media vs. Loctek Ergonomic Technology |
| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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