Correlation Between Thinkingdom Media and Chongqing Sulian
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By analyzing existing cross correlation between Thinkingdom Media Group and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Thinkingdom Media and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Chongqing Sulian.
Diversification Opportunities for Thinkingdom Media and Chongqing Sulian
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thinkingdom and Chongqing is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Chongqing Sulian
Assuming the 90 days trading horizon Thinkingdom Media is expected to generate 5.15 times less return on investment than Chongqing Sulian. But when comparing it to its historical volatility, Thinkingdom Media Group is 1.82 times less risky than Chongqing Sulian. It trades about 0.04 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,591 in Chongqing Sulian Plastic on October 30, 2024 and sell it today you would earn a total of 291.00 from holding Chongqing Sulian Plastic or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Thinkingdom Media |
| Chongqing Sulian Plastic |
Thinkingdom Media and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Chongqing Sulian
The main advantage of trading using opposite Thinkingdom Media and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Thinkingdom Media vs. Beijing Bewinner Communications | Thinkingdom Media vs. Sunny Loan Top | Thinkingdom Media vs. Jilin Jlu Communication | Thinkingdom Media vs. Songz Automobile Air |
| Chongqing Sulian vs. Kweichow Moutai Co | Chongqing Sulian vs. Jiangsu Pacific Quartz | Chongqing Sulian vs. Shenzhen Transsion Holdings | Chongqing Sulian vs. Beijing Roborock Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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