Correlation Between Thinkingdom Media and Guangdong Wens
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By analyzing existing cross correlation between Thinkingdom Media Group and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Thinkingdom Media and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Guangdong Wens.
Diversification Opportunities for Thinkingdom Media and Guangdong Wens
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thinkingdom and Guangdong is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Guangdong Wens go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Guangdong Wens
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.5 times more return on investment than Guangdong Wens. However, Thinkingdom Media is 1.5 times more volatile than Guangdong Wens Foodstuff. It trades about 0.01 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.01 per unit of risk. If you would invest 1,954 in Thinkingdom Media Group on October 16, 2024 and sell it today you would lose (20.00) from holding Thinkingdom Media Group or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Thinkingdom Media |
| Guangdong Wens Foodstuff |
Thinkingdom Media and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Guangdong Wens
The main advantage of trading using opposite Thinkingdom Media and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Thinkingdom Media vs. Anhui Transport Consulting | Thinkingdom Media vs. Zhengzhou Coal Mining | Thinkingdom Media vs. Chongqing Shunbo Aluminum | Thinkingdom Media vs. Ningbo Fujia Industrial |
| Guangdong Wens vs. Thinkingdom Media Group | Guangdong Wens vs. Omnijoi Media Corp | Guangdong Wens vs. Southchip Semiconductor Technology | Guangdong Wens vs. Ingenic Semiconductor |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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