Correlation Between Thinkingdom Media and Beijing Zhidemai
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By analyzing existing cross correlation between Thinkingdom Media Group and Beijing Zhidemai Technology, you can compare the effects of market volatilities on Thinkingdom Media and Beijing Zhidemai 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 Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Beijing Zhidemai.
Diversification Opportunities for Thinkingdom Media and Beijing Zhidemai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thinkingdom and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec 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 Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Beijing Zhidemai
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 0.48 times more return on investment than Beijing Zhidemai. However, Thinkingdom Media Group is 2.1 times less risky than Beijing Zhidemai. It trades about 0.35 of its potential returns per unit of risk. Beijing Zhidemai Technology is currently generating about 0.06 per unit of risk. If you would invest 1,733 in Thinkingdom Media Group on September 1, 2024 and sell it today you would earn a total of 503.00 from holding Thinkingdom Media Group or generate 29.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Beijing Zhidemai Technology
Performance |
| Timeline |
| Thinkingdom Media |
| Beijing Zhidemai Tec |
Thinkingdom Media and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Beijing Zhidemai
The main advantage of trading using opposite Thinkingdom Media and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Beijing Zhidemai 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 Beijing Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| Thinkingdom Media vs. Cambricon Technologies Corp | Thinkingdom Media vs. Loongson Technology Corp | Thinkingdom Media vs. Shenzhen Fortune Trend | Thinkingdom Media vs. Chongqing Road Bridge |
| Beijing Zhidemai vs. Lotus Health Group | Beijing Zhidemai vs. Ligao Foods CoLtd | Beijing Zhidemai vs. Yankershop Food Co | Beijing Zhidemai vs. Yunnan Jianzhijia Health Chain |
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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