Correlation Between Changjiang Publishing and China Publishing
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By analyzing existing cross correlation between Changjiang Publishing Media and China Publishing Media, you can compare the effects of market volatilities on Changjiang Publishing and China Publishing 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 Changjiang Publishing with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and China Publishing.
Diversification Opportunities for Changjiang Publishing and China Publishing
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changjiang and China is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Changjiang Publishing 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 Changjiang Publishing Media are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and China Publishing go up and down completely randomly.
Pair Corralation between Changjiang Publishing and China Publishing
Assuming the 90 days trading horizon Changjiang Publishing is expected to generate 1.55 times less return on investment than China Publishing. But when comparing it to its historical volatility, Changjiang Publishing Media is 1.99 times less risky than China Publishing. It trades about 0.11 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 786.00 in China Publishing Media on September 15, 2024 and sell it today you would earn a total of 51.00 from holding China Publishing Media or generate 6.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Changjiang Publishing Media vs. China Publishing Media
Performance |
Timeline |
Changjiang Publishing |
China Publishing Media |
Changjiang Publishing and China Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changjiang Publishing and China Publishing
The main advantage of trading using opposite Changjiang Publishing and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.Changjiang Publishing vs. Ming Yang Smart | Changjiang Publishing vs. 159681 | Changjiang Publishing vs. 159005 | Changjiang Publishing vs. Loctek Ergonomic Technology |
China Publishing vs. Ming Yang Smart | China Publishing vs. 159681 | China Publishing vs. 159005 | China Publishing vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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