Correlation Between Shanghai Action and Guangzhou Jinyi
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By analyzing existing cross correlation between Shanghai Action Education and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Shanghai Action and Guangzhou Jinyi 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 Shanghai Action with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Guangzhou Jinyi.
Diversification Opportunities for Shanghai Action and Guangzhou Jinyi
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Guangzhou is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media and Shanghai Action 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 Shanghai Action Education are associated (or correlated) with Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Shanghai Action i.e., Shanghai Action and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Shanghai Action and Guangzhou Jinyi
Assuming the 90 days trading horizon Shanghai Action Education is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Action Education is 1.9 times less risky than Guangzhou Jinyi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Guangzhou Jinyi Media on November 6, 2024 and sell it today you would earn a total of 78.00 from holding Guangzhou Jinyi Media or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Shanghai Action Education |
| Guangzhou Jinyi Media |
Shanghai Action and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Guangzhou Jinyi
The main advantage of trading using opposite Shanghai Action and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Shanghai Action vs. Shenyang Chemical Industry | Shanghai Action vs. Jinsanjiang Silicon Material | Shanghai Action vs. Shenzhen Noposion Agrochemicals | Shanghai Action vs. Beijing Lier High |
| Guangzhou Jinyi vs. Ningbo Construction Co | Guangzhou Jinyi vs. Shandong Publishing Media | Guangzhou Jinyi vs. Threes Company Media | Guangzhou Jinyi vs. Chengdu B ray Media |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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