Correlation Between Jiangsu Yanghe and COL Digital
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and COL Digital Publishing, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and COL Digital.
Diversification Opportunities for Jiangsu Yanghe and COL Digital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and COL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 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 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and COL Digital go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and COL Digital
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.54 times more return on investment than COL Digital. However, Jiangsu Yanghe Brewery is 1.86 times less risky than COL Digital. It trades about -0.05 of its potential returns per unit of risk. COL Digital Publishing is currently generating about -0.12 per unit of risk. If you would invest 8,721 in Jiangsu Yanghe Brewery on August 29, 2024 and sell it today you would lose (279.00) from holding Jiangsu Yanghe Brewery or give up 3.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yanghe Brewery vs. COL Digital Publishing
Performance |
Timeline |
Jiangsu Yanghe Brewery |
COL Digital Publishing |
Jiangsu Yanghe and COL Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yanghe and COL Digital
The main advantage of trading using opposite Jiangsu Yanghe and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.Jiangsu Yanghe vs. BYD Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Industrial and Commercial |
COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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