Correlation Between Zhong Yang and GD Culture
Can any of the company-specific risk be diversified away by investing in both Zhong Yang and GD Culture at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zhong Yang and GD Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhong Yang Financial and GD Culture Group, you can compare the effects of market volatilities on Zhong Yang and GD Culture 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 Zhong Yang with a short position of GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhong Yang and GD Culture.
Diversification Opportunities for Zhong Yang and GD Culture
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhong and GDC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zhong Yang Financial and GD Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Culture Group and Zhong Yang 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 Zhong Yang Financial are associated (or correlated) with GD Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Culture Group has no effect on the direction of Zhong Yang i.e., Zhong Yang and GD Culture go up and down completely randomly.
Pair Corralation between Zhong Yang and GD Culture
Considering the 90-day investment horizon Zhong Yang Financial is expected to under-perform the GD Culture. But the stock apears to be less risky and, when comparing its historical volatility, Zhong Yang Financial is 2.72 times less risky than GD Culture. The stock trades about -0.03 of its potential returns per unit of risk. The GD Culture Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 273.00 in GD Culture Group on June 6, 2025 and sell it today you would earn a total of 109.00 from holding GD Culture Group or generate 39.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhong Yang Financial vs. GD Culture Group
Performance |
| Timeline |
| Zhong Yang Financial |
| GD Culture Group |
Zhong Yang and GD Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhong Yang and GD Culture
The main advantage of trading using opposite Zhong Yang and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhong Yang position performs unexpectedly, GD Culture 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 GD Culture will offset losses from the drop in GD Culture's long position.| Zhong Yang vs. Magic Empire Global | Zhong Yang vs. Netcapital | Zhong Yang vs. Applied Digital | Zhong Yang vs. Huadi International Group |
| GD Culture vs. Motorsport Gaming Us | GD Culture vs. Blue Hat Interactive | GD Culture vs. Bilibili | GD Culture vs. Zhong Yang Financial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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