Correlation Between Leaguer Shenzhen and Guangzhou Jinyi
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Leaguer Shenzhen 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 Leaguer Shenzhen with a short position of Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Guangzhou Jinyi.
Diversification Opportunities for Leaguer Shenzhen and Guangzhou Jinyi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leaguer and Guangzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron 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 Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics 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 Leaguer Shenzhen i.e., Leaguer Shenzhen and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Guangzhou Jinyi
Assuming the 90 days trading horizon Leaguer Shenzhen is expected to generate 1.33 times less return on investment than Guangzhou Jinyi. In addition to that, Leaguer Shenzhen is 1.1 times more volatile than Guangzhou Jinyi Media. It trades about 0.05 of its total potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.08 per unit of volatility. If you would invest 623.00 in Guangzhou Jinyi Media on September 27, 2024 and sell it today you would earn a total of 176.00 from holding Guangzhou Jinyi Media or generate 28.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Guangzhou Jinyi Media |
Leaguer Shenzhen and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Guangzhou Jinyi
The main advantage of trading using opposite Leaguer Shenzhen and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen 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.| Leaguer Shenzhen vs. Ming Yang Smart | Leaguer Shenzhen vs. 159681 | Leaguer Shenzhen vs. 159005 | Leaguer Shenzhen vs. Loctek Ergonomic Technology |
| Guangzhou Jinyi vs. Cultural Investment Holdings | Guangzhou Jinyi vs. Gome Telecom Equipment | Guangzhou Jinyi vs. Bus Online Co | Guangzhou Jinyi vs. Holitech Technology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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