Correlation Between Oriental Times and Chengdu B
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By analyzing existing cross correlation between Oriental Times Media and Chengdu B ray Media, you can compare the effects of market volatilities on Oriental Times and Chengdu B 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 Oriental Times with a short position of Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Chengdu B.
Diversification Opportunities for Oriental Times and Chengdu B
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oriental and Chengdu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray and Oriental Times 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 Oriental Times Media are associated (or correlated) with Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Oriental Times i.e., Oriental Times and Chengdu B go up and down completely randomly.
Pair Corralation between Oriental Times and Chengdu B
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.38 times more return on investment than Chengdu B. However, Oriental Times is 1.38 times more volatile than Chengdu B ray Media. It trades about 0.13 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.04 per unit of risk. If you would invest 233.00 in Oriental Times Media on September 3, 2024 and sell it today you would earn a total of 219.00 from holding Oriental Times Media or generate 93.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Chengdu B ray Media
Performance |
| Timeline |
| Oriental Times Media |
| Chengdu B ray |
Oriental Times and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Chengdu B
The main advantage of trading using opposite Oriental Times and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Oriental Times vs. Agricultural Bank of | Oriental Times vs. China Construction Bank | Oriental Times vs. Postal Savings Bank | Oriental Times vs. Bank of Communications |
| Chengdu B vs. Gansu Jiu Steel | Chengdu B vs. Ming Yang Smart | Chengdu B vs. Aba Chemicals Corp | Chengdu B vs. Loctek Ergonomic Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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