Correlation Between Thinkingdom Media and China Merchants
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By analyzing existing cross correlation between Thinkingdom Media Group and China Merchants Shekou, you can compare the effects of market volatilities on Thinkingdom Media and China Merchants 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 Thinkingdom Media with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and China Merchants.
Diversification Opportunities for Thinkingdom Media and China Merchants
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thinkingdom and China is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou and Thinkingdom 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 Thinkingdom Media Group are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and China Merchants go up and down completely randomly.
Pair Corralation between Thinkingdom Media and China Merchants
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 2.33 times more return on investment than China Merchants. However, Thinkingdom Media is 2.33 times more volatile than China Merchants Shekou. It trades about -0.02 of its potential returns per unit of risk. China Merchants Shekou is currently generating about -0.41 per unit of risk. If you would invest 2,116 in Thinkingdom Media Group on October 12, 2024 and sell it today you would lose (51.00) from holding Thinkingdom Media Group or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. China Merchants Shekou
Performance |
| Timeline |
| Thinkingdom Media |
| China Merchants Shekou |
Thinkingdom Media and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and China Merchants
The main advantage of trading using opposite Thinkingdom Media and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Thinkingdom Media vs. Ping An Insurance | Thinkingdom Media vs. Shenzhen Zhongzhuang Construction | Thinkingdom Media vs. Sunny Loan Top | Thinkingdom Media vs. Anhui Huilong Agricultural |
| China Merchants vs. China Publishing Media | China Merchants vs. Changjiang Publishing Media | China Merchants vs. Thinkingdom Media Group | China Merchants vs. COL Digital Publishing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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