Correlation Between China Building and Thinkingdom Media
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By analyzing existing cross correlation between China Building Material and Thinkingdom Media Group, you can compare the effects of market volatilities on China Building and Thinkingdom Media 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 Building with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Building and Thinkingdom Media.
Diversification Opportunities for China Building and Thinkingdom Media
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Thinkingdom is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Building Material and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and China Building 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 Building Material are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of China Building i.e., China Building and Thinkingdom Media go up and down completely randomly.
Pair Corralation between China Building and Thinkingdom Media
Assuming the 90 days trading horizon China Building Material is expected to generate 0.55 times more return on investment than Thinkingdom Media. However, China Building Material is 1.81 times less risky than Thinkingdom Media. It trades about 0.17 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about -0.11 per unit of risk. If you would invest 688.00 in China Building Material on November 6, 2024 and sell it today you would earn a total of 28.00 from holding China Building Material or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Building Material vs. Thinkingdom Media Group
Performance |
| Timeline |
| China Building Material |
| Thinkingdom Media |
China Building and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Building and Thinkingdom Media
The main advantage of trading using opposite China Building and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Building position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| China Building vs. Zijin Mining Group | China Building vs. Western Mining Co | China Building vs. Time Publishing and | China Building vs. Shandong Publishing Media |
| Thinkingdom Media vs. Queclink Wireless Solutions | Thinkingdom Media vs. Sinomach Automobile Co | Thinkingdom Media vs. Guangxi Wuzhou Communications | Thinkingdom Media vs. Beijing Mainstreets Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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