Correlation Between China Securities and Southern PublishingMedia
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By analyzing existing cross correlation between China Securities 800 and Southern PublishingMedia Co, you can compare the effects of market volatilities on China Securities and Southern PublishingMedia 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 Securities with a short position of Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Southern PublishingMedia.
Diversification Opportunities for China Securities and Southern PublishingMedia
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Southern is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia and China Securities 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 Securities 800 are associated (or correlated) with Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of China Securities i.e., China Securities and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between China Securities and Southern PublishingMedia
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.35 times more return on investment than Southern PublishingMedia. However, China Securities 800 is 2.87 times less risky than Southern PublishingMedia. It trades about 0.01 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about -0.02 per unit of risk. If you would invest 417,960 in China Securities 800 on August 31, 2024 and sell it today you would earn a total of 5,576 from holding China Securities 800 or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Southern PublishingMedia Co
Performance |
| Timeline |
China Securities and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Southern PublishingMedia Co
Pair trading matchups for Southern PublishingMedia
Pair Trading with China Securities and Southern PublishingMedia
The main advantage of trading using opposite China Securities and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Southern PublishingMedia vs. BYD Co Ltd | Southern PublishingMedia vs. Agricultural Bank of | Southern PublishingMedia vs. Industrial and Commercial | Southern PublishingMedia vs. China State Construction |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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