Correlation Between Shanghai Metersbonwe and Ciwen Media
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Ciwen Media Co, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Ciwen Media.
Diversification Opportunities for Shanghai Metersbonwe and Ciwen Media
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Ciwen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Ciwen Media go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Ciwen Media
Assuming the 90 days trading horizon Shanghai Metersbonwe is expected to generate 5.51 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, Shanghai Metersbonwe FashionAccessories is 1.32 times less risky than Ciwen Media. It trades about 0.01 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 588.00 in Ciwen Media Co on September 3, 2024 and sell it today you would earn a total of 162.00 from holding Ciwen Media Co or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Ciwen Media Co
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Ciwen Media |
Shanghai Metersbonwe and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Ciwen Media
The main advantage of trading using opposite Shanghai Metersbonwe and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
| Ciwen Media vs. Lander Sports Development | Ciwen Media vs. De Rucci Healthy | Ciwen Media vs. Humanwell Healthcare Group | Ciwen Media vs. By health |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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