Correlation Between Xiandai Investment and Changjiang Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiandai Investment Co and Changjiang Publishing Media, you can compare the effects of market volatilities on Xiandai Investment and Changjiang 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 Xiandai Investment with a short position of Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Changjiang Publishing.
Diversification Opportunities for Xiandai Investment and Changjiang Publishing
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiandai and Changjiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Xiandai Investment and Changjiang Publishing
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 1.09 times less return on investment than Changjiang Publishing. But when comparing it to its historical volatility, Xiandai Investment Co is 1.25 times less risky than Changjiang Publishing. It trades about 0.05 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 737.00 in Changjiang Publishing Media on October 22, 2024 and sell it today you would earn a total of 129.00 from holding Changjiang Publishing Media or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Changjiang Publishing Media
Performance |
| Timeline |
| Xiandai Investment |
| Changjiang Publishing |
Xiandai Investment and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Changjiang Publishing
The main advantage of trading using opposite Xiandai Investment and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Changjiang 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.The idea behind Xiandai Investment Co and Changjiang Publishing Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Changjiang Publishing vs. Dymatic Chemicals | Changjiang Publishing vs. HeBei Jinniu Chemical | Changjiang Publishing vs. Hengli Industrial Development | Changjiang Publishing vs. Pengxin International Mining |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |