Correlation Between Shaanxi Meineng and COL Digital
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By analyzing existing cross correlation between Shaanxi Meineng Clean and COL Digital Publishing, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and COL Digital.
Diversification Opportunities for Shaanxi Meineng and COL Digital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and COL is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean 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 Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and COL Digital go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and COL Digital
Assuming the 90 days trading horizon Shaanxi Meineng is expected to generate 3.08 times less return on investment than COL Digital. But when comparing it to its historical volatility, Shaanxi Meineng Clean is 2.19 times less risky than COL Digital. It trades about 0.04 of its potential returns per unit of risk. COL Digital Publishing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,956 in COL Digital Publishing on October 26, 2024 and sell it today you would earn a total of 453.00 from holding COL Digital Publishing or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. COL Digital Publishing
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| COL Digital Publishing |
Shaanxi Meineng and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and COL Digital
The main advantage of trading using opposite Shaanxi Meineng and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. PetroChina Co Ltd | Shaanxi Meineng vs. China Mobile Limited | Shaanxi Meineng vs. CNOOC Limited | Shaanxi Meineng vs. Ping An Insurance |
| COL Digital vs. Highbroad Advanced Material | COL Digital vs. Jiangyin Jianghua Microelectronics | COL Digital vs. Road Environment Technology | COL Digital vs. Guangdong Ellington Electronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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