Correlation Between Jiangsu Yanghe and Ciwen Media
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Ciwen Media Co, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Ciwen Media.
Diversification Opportunities for Jiangsu Yanghe and Ciwen Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Ciwen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Ciwen Media go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Ciwen Media
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Ciwen Media. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 2.07 times less risky than Ciwen Media. The stock trades about -0.04 of its potential returns per unit of risk. The Ciwen Media Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Ciwen Media Co on September 2, 2024 and sell it today you would lose (50.00) from holding Ciwen Media Co or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Ciwen Media Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Ciwen Media |
Jiangsu Yanghe and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Ciwen Media
The main advantage of trading using opposite Jiangsu Yanghe and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. China Petroleum Chemical | Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China State Construction | Jiangsu Yanghe vs. China Railway Group |
| Ciwen Media vs. Lutian Machinery Co | Ciwen Media vs. China Longyuan Power | Ciwen Media vs. PetroChina Co Ltd | Ciwen Media vs. Bank of China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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