Correlation Between Guangdong Jinma and Qinghaihuading Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jinma Entertainment and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Guangdong Jinma and Qinghaihuading Industrial 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 Guangdong Jinma with a short position of Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Qinghaihuading Industrial.
Diversification Opportunities for Guangdong Jinma and Qinghaihuading Industrial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Qinghaihuading is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial and Guangdong Jinma 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 Guangdong Jinma Entertainment are associated (or correlated) with Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Qinghaihuading Industrial
Assuming the 90 days trading horizon Guangdong Jinma is expected to generate 1.24 times less return on investment than Qinghaihuading Industrial. But when comparing it to its historical volatility, Guangdong Jinma Entertainment is 1.02 times less risky than Qinghaihuading Industrial. It trades about 0.02 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 431.00 in Qinghaihuading Industrial Co on September 24, 2024 and sell it today you would earn a total of 25.00 from holding Qinghaihuading Industrial Co or generate 5.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jinma Entertainment vs. Qinghaihuading Industrial Co
Performance |
Timeline |
Guangdong Jinma Ente |
Qinghaihuading Industrial |
Guangdong Jinma and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jinma and Qinghaihuading Industrial
The main advantage of trading using opposite Guangdong Jinma and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. CNOOC Limited | Guangdong Jinma vs. Ping An Insurance |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |