Correlation Between Shenzhen Fortune and Thinkingdom Media
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Thinkingdom Media Group, you can compare the effects of market volatilities on Shenzhen Fortune and Thinkingdom Media 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 Shenzhen Fortune with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Thinkingdom Media.
Diversification Opportunities for Shenzhen Fortune and Thinkingdom Media
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Thinkingdom is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and Shenzhen Fortune 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 Shenzhen Fortune Trend are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Thinkingdom Media
Assuming the 90 days trading horizon Shenzhen Fortune is expected to generate 1.46 times less return on investment than Thinkingdom Media. In addition to that, Shenzhen Fortune is 1.83 times more volatile than Thinkingdom Media Group. It trades about 0.13 of its total potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.35 per unit of volatility. 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 |
Shenzhen Fortune Trend vs. Thinkingdom Media Group
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Thinkingdom Media |
Shenzhen Fortune and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Thinkingdom Media
The main advantage of trading using opposite Shenzhen Fortune and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Shenzhen Fortune vs. Ming Yang Smart | Shenzhen Fortune vs. 159681 | Shenzhen Fortune vs. 159005 | Shenzhen Fortune vs. Loctek Ergonomic Technology |
| Thinkingdom Media vs. Cambricon Technologies Corp | Thinkingdom Media vs. Loongson Technology Corp | Thinkingdom Media vs. Shenzhen Fortune Trend | Thinkingdom Media vs. Chongqing Road Bridge |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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