Correlation Between China Merchants and Ciwen Media
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By analyzing existing cross correlation between China Merchants Shekou and Ciwen Media Co, you can compare the effects of market volatilities on China Merchants and Ciwen Media 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 Merchants with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Ciwen Media.
Diversification Opportunities for China Merchants and Ciwen Media
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Ciwen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and China Merchants 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 Merchants Shekou are associated (or correlated) with Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of China Merchants i.e., China Merchants and Ciwen Media go up and down completely randomly.
Pair Corralation between China Merchants and Ciwen Media
Assuming the 90 days trading horizon China Merchants Shekou is expected to generate 0.62 times more return on investment than Ciwen Media. However, China Merchants Shekou is 1.63 times less risky than Ciwen Media. It trades about -0.08 of its potential returns per unit of risk. Ciwen Media Co is currently generating about -0.09 per unit of risk. If you would invest 1,023 in China Merchants Shekou on October 26, 2024 and sell it today you would lose (30.00) from holding China Merchants Shekou or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Ciwen Media Co
Performance |
| Timeline |
| China Merchants Shekou |
| Ciwen Media |
China Merchants and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Ciwen Media
The main advantage of trading using opposite China Merchants and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| China Merchants vs. Dr Peng Telecom | China Merchants vs. Innovative Medical Management | China Merchants vs. Gansu Huangtai Wine marketing | China Merchants vs. Allwin Telecommunication Co |
| Ciwen Media vs. China State Construction | Ciwen Media vs. Poly Real Estate | Ciwen Media vs. China Vanke Co | Ciwen Media vs. China Merchants Shekou |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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