Correlation Between China Publishing and Guangzhou Dongfang
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By analyzing existing cross correlation between China Publishing Media and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on China Publishing and Guangzhou Dongfang 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 China Publishing with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Guangzhou Dongfang.
Diversification Opportunities for China Publishing and Guangzhou Dongfang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Guangzhou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and China 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 China Publishing Media are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of China Publishing i.e., China Publishing and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between China Publishing and Guangzhou Dongfang
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the Guangzhou Dongfang. But the stock apears to be less risky and, when comparing its historical volatility, China Publishing Media is 1.17 times less risky than Guangzhou Dongfang. The stock trades about -0.21 of its potential returns per unit of risk. The Guangzhou Dongfang Hotel is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 979.00 in Guangzhou Dongfang Hotel on October 26, 2024 and sell it today you would lose (44.00) from holding Guangzhou Dongfang Hotel or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| China Publishing Media |
| Guangzhou Dongfang Hotel |
China Publishing and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Guangzhou Dongfang
The main advantage of trading using opposite China Publishing and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Guangzhou Dongfang 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 Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| China Publishing vs. Jiujiang Shanshui Technology | China Publishing vs. Guangdong Wens Foodstuff | China Publishing vs. Xiwang Foodstuffs Co | China Publishing vs. Eastroc Beverage Group |
| Guangzhou Dongfang vs. China Publishing Media | Guangzhou Dongfang vs. Tangel Publishing | Guangzhou Dongfang vs. Bohai Leasing Co | Guangzhou Dongfang vs. Easyhome New Retail |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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