Correlation Between Thinkingdom Media and Xiamen CD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Thinkingdom Media Group and Xiamen CD, you can compare the effects of market volatilities on Thinkingdom Media and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Xiamen CD.
Diversification Opportunities for Thinkingdom Media and Xiamen CD
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thinkingdom and Xiamen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Xiamen CD go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Xiamen CD
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.37 times more return on investment than Xiamen CD. However, Thinkingdom Media is 1.37 times more volatile than Xiamen CD. It trades about 0.35 of its potential returns per unit of risk. Xiamen CD is currently generating about 0.11 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 | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Xiamen CD
Performance |
| Timeline |
| Thinkingdom Media |
| Xiamen CD |
Thinkingdom Media and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Xiamen CD
The main advantage of trading using opposite Thinkingdom Media and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD'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 |
| Xiamen CD vs. Lander Sports Development | Xiamen CD vs. Sportsoul Co Ltd | Xiamen CD vs. Zhejiang Daily Media | Xiamen CD vs. Inly Media 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |