Correlation Between Changchun and China Publishing
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By analyzing existing cross correlation between Changchun UP Optotech and China Publishing Media, you can compare the effects of market volatilities on Changchun and China Publishing 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 Changchun with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and China Publishing.
Diversification Opportunities for Changchun and China Publishing
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Changchun 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 Changchun UP Optotech are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Changchun i.e., Changchun and China Publishing go up and down completely randomly.
Pair Corralation between Changchun and China Publishing
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 0.98 times more return on investment than China Publishing. However, Changchun UP Optotech is 1.02 times less risky than China Publishing. It trades about 0.05 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.05 per unit of risk. If you would invest 2,329 in Changchun UP Optotech on September 3, 2024 and sell it today you would earn a total of 1,826 from holding Changchun UP Optotech or generate 78.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. China Publishing Media
Performance |
| Timeline |
| Changchun UP Optotech |
| China Publishing Media |
Changchun and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and China Publishing
The main advantage of trading using opposite Changchun and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Changchun vs. Focus Media Information | Changchun vs. Jiangsu Yanghe Brewery | Changchun vs. Guangdong Brandmax Marketing | Changchun vs. YLZ Information Tech |
| China Publishing vs. China Railway Construction | China Publishing vs. Lutian Machinery Co | China Publishing vs. Anhui Huilong Agricultural | China Publishing vs. Yingde Greatchem Chemicals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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