Correlation Between Ciwen Media and Shaanxi Meineng
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By analyzing existing cross correlation between Ciwen Media Co and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Ciwen Media and Shaanxi Meineng 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 Ciwen Media with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Shaanxi Meineng.
Diversification Opportunities for Ciwen Media and Shaanxi Meineng
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ciwen and Shaanxi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Ciwen Media 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 Ciwen Media Co are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Ciwen Media i.e., Ciwen Media and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Ciwen Media and Shaanxi Meineng
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 1.5 times more return on investment than Shaanxi Meineng. However, Ciwen Media is 1.5 times more volatile than Shaanxi Meineng Clean. It trades about 0.17 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.07 per unit of risk. If you would invest 711.00 in Ciwen Media Co on September 13, 2024 and sell it today you would earn a total of 85.00 from holding Ciwen Media Co or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Ciwen Media |
| Shaanxi Meineng Clean |
Ciwen Media and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Shaanxi Meineng
The main advantage of trading using opposite Ciwen Media and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Ciwen Media vs. Shaanxi Energy Investment | Ciwen Media vs. Kunwu Jiuding Investment | Ciwen Media vs. Henan Shuanghui Investment | Ciwen Media vs. Nuode Investment Co |
| Shaanxi Meineng vs. Innovative Medical Management | Shaanxi Meineng vs. Cowealth Medical China | Shaanxi Meineng vs. Zhongzhu Medical Holdings | Shaanxi Meineng vs. Touchstone International Medical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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