Correlation Between Huaxia Eye and COL Digital
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By analyzing existing cross correlation between Huaxia Eye Hospital and COL Digital Publishing, you can compare the effects of market volatilities on Huaxia Eye and COL Digital 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 Huaxia Eye with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Eye and COL Digital.
Diversification Opportunities for Huaxia Eye and COL Digital
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaxia and COL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Eye Hospital and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing and Huaxia Eye 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 Huaxia Eye Hospital are associated (or correlated) with COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Huaxia Eye i.e., Huaxia Eye and COL Digital go up and down completely randomly.
Pair Corralation between Huaxia Eye and COL Digital
Assuming the 90 days trading horizon Huaxia Eye Hospital is expected to under-perform the COL Digital. But the stock apears to be less risky and, when comparing its historical volatility, Huaxia Eye Hospital is 1.81 times less risky than COL Digital. The stock trades about -0.04 of its potential returns per unit of risk. The COL Digital Publishing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,031 in COL Digital Publishing on September 24, 2024 and sell it today you would earn a total of 1,584 from holding COL Digital Publishing or generate 153.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Huaxia Eye Hospital vs. COL Digital Publishing
Performance |
Timeline |
Huaxia Eye Hospital |
COL Digital Publishing |
Huaxia Eye and COL Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huaxia Eye and COL Digital
The main advantage of trading using opposite Huaxia Eye and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Eye position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.Huaxia Eye vs. Ningbo MedicalSystem Biotechnology | Huaxia Eye vs. Liaoning Chengda Biotechnology | Huaxia Eye vs. Anyang Iron Steel | Huaxia Eye vs. Aofu Environmental Technology |
COL Digital vs. Jilin Jlu Communication | COL Digital vs. Guangzhou Haige Communications | COL Digital vs. Huaxia Eye Hospital | COL Digital vs. Everjoy Health Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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