Correlation Between Threes Company and Guangdong Jingyi
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By analyzing existing cross correlation between Threes Company Media and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Threes Company and Guangdong Jingyi 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 Threes Company with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Guangdong Jingyi.
Diversification Opportunities for Threes Company and Guangdong Jingyi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Threes and Guangdong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Threes Company 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 Threes Company Media are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Threes Company i.e., Threes Company and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Threes Company and Guangdong Jingyi
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Guangdong Jingyi. In addition to that, Threes Company is 1.34 times more volatile than Guangdong Jingyi Metal. It trades about -0.2 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.0 per unit of volatility. If you would invest 701.00 in Guangdong Jingyi Metal on October 23, 2024 and sell it today you would lose (7.00) from holding Guangdong Jingyi Metal or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Threes Company Media vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Threes Company |
| Guangdong Jingyi Metal |
Threes Company and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Guangdong Jingyi
The main advantage of trading using opposite Threes Company and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Threes Company vs. Ming Yang Smart | Threes Company vs. 159681 | Threes Company vs. 159005 | Threes Company vs. Loctek Ergonomic Technology |
| Guangdong Jingyi vs. Guangzhou Haozhi Industrial | Guangdong Jingyi vs. Anhui Jinhe Industrial | Guangdong Jingyi vs. Hunan Tyen Machinery | Guangdong Jingyi vs. JS Corrugating Machinery |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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