Correlation Between China Publishing and Dongxing Sec
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By analyzing existing cross correlation between China Publishing Media and Dongxing Sec Co, you can compare the effects of market volatilities on China Publishing and Dongxing Sec 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 China Publishing with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Dongxing Sec.
Diversification Opportunities for China Publishing and Dongxing Sec
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Dongxing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and China 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 China Publishing Media are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of China Publishing i.e., China Publishing and Dongxing Sec go up and down completely randomly.
Pair Corralation between China Publishing and Dongxing Sec
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.99 times more return on investment than Dongxing Sec. However, China Publishing Media is 1.01 times less risky than Dongxing Sec. It trades about 0.14 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.14 per unit of risk. If you would invest 603.00 in China Publishing Media on September 24, 2024 and sell it today you would earn a total of 202.00 from holding China Publishing Media or generate 33.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Publishing Media vs. Dongxing Sec Co
Performance |
Timeline |
China Publishing Media |
Dongxing Sec |
China Publishing and Dongxing Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Publishing and Dongxing Sec
The main advantage of trading using opposite China Publishing and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.China Publishing vs. PetroChina Co Ltd | China Publishing vs. China Mobile Limited | China Publishing vs. CNOOC Limited | China Publishing vs. Ping An Insurance |
Dongxing Sec vs. Liuzhou Chemical Industry | Dongxing Sec vs. Daoming OpticsChemical Co | Dongxing Sec vs. Guangzhou Jointas Chemical | Dongxing Sec vs. China Publishing Media |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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