Correlation Between Thinkingdom Media and Guangdong Jinma
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By analyzing existing cross correlation between Thinkingdom Media Group and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Thinkingdom Media and Guangdong Jinma 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 Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Guangdong Jinma.
Diversification Opportunities for Thinkingdom Media and Guangdong Jinma
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thinkingdom and Guangdong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Guangdong Jinma
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.16 times more return on investment than Guangdong Jinma. However, Thinkingdom Media is 1.16 times more volatile than Guangdong Jinma Entertainment. It trades about 0.09 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.08 per unit of risk. If you would invest 1,891 in Thinkingdom Media Group on October 23, 2024 and sell it today you would earn a total of 92.00 from holding Thinkingdom Media Group or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Thinkingdom Media |
| Guangdong Jinma Ente |
Thinkingdom Media and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Guangdong Jinma
The main advantage of trading using opposite Thinkingdom Media and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Guangdong Jinma 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 Jinma will offset losses from the drop in Guangdong Jinma's long position.| Thinkingdom Media vs. Cambricon Technologies Corp | Thinkingdom Media vs. SGSG Sciencetechnology Co | Thinkingdom Media vs. Loongson Technology Corp | Thinkingdom Media vs. Zhonghang Electronic Measuring |
| Guangdong Jinma vs. Agricultural Bank of | Guangdong Jinma vs. Industrial and Commercial | Guangdong Jinma vs. Bank of China | Guangdong Jinma vs. China Construction Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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