Correlation Between Thinkingdom Media and Guangzhou Haige
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By analyzing existing cross correlation between Thinkingdom Media Group and Guangzhou Haige Communications, you can compare the effects of market volatilities on Thinkingdom Media and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Guangzhou Haige.
Diversification Opportunities for Thinkingdom Media and Guangzhou Haige
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thinkingdom and Guangzhou is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Guangzhou Haige
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.71 times more return on investment than Guangzhou Haige. However, Thinkingdom Media is 1.71 times more volatile than Guangzhou Haige Communications. It trades about -0.08 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.39 per unit of risk. If you would invest 2,175 in Thinkingdom Media Group on October 17, 2024 and sell it today you would lose (160.00) from holding Thinkingdom Media Group or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Thinkingdom Media |
| Guangzhou Haige Comm |
Thinkingdom Media and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Guangzhou Haige
The main advantage of trading using opposite Thinkingdom Media and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Thinkingdom Media vs. Nanjing Putian Telecommunications | Thinkingdom Media vs. China Minmetals Rare | Thinkingdom Media vs. Songz Automobile Air | Thinkingdom Media vs. Jonjee Hi tech Industrial |
| Guangzhou Haige vs. Industrial Bank Co | Guangzhou Haige vs. Southern PublishingMedia Co | Guangzhou Haige vs. Thinkingdom Media Group | Guangzhou Haige vs. Hengdian Entertainment Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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