Correlation Between Ciwen Media and Shanghai Metersbonwe
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By analyzing existing cross correlation between Ciwen Media Co and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Ciwen Media and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Shanghai Metersbonwe.
Diversification Opportunities for Ciwen Media and Shanghai Metersbonwe
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ciwen and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Ciwen Media i.e., Ciwen Media and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Ciwen Media and Shanghai Metersbonwe
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 1.32 times more return on investment than Shanghai Metersbonwe. However, Ciwen Media is 1.32 times more volatile than Shanghai Metersbonwe FashionAccessories. It trades about 0.03 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.01 per unit of risk. 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 |
Ciwen Media Co vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Ciwen Media |
| Shanghai Metersbonwe |
Ciwen Media and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Shanghai Metersbonwe
The main advantage of trading using opposite Ciwen Media and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Ciwen Media vs. Lander Sports Development | Ciwen Media vs. De Rucci Healthy | Ciwen Media vs. Humanwell Healthcare Group | Ciwen Media vs. By health |
| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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