Correlation Between Ciwen Media and Hubei Yingtong
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By analyzing existing cross correlation between Ciwen Media Co and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Ciwen Media and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Hubei Yingtong.
Diversification Opportunities for Ciwen Media and Hubei Yingtong
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ciwen and Hubei is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Ciwen Media i.e., Ciwen Media and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Ciwen Media and Hubei Yingtong
Assuming the 90 days trading horizon Ciwen Media Co is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Ciwen Media Co is 2.12 times less risky than Hubei Yingtong. The stock trades about -0.46 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Hubei Yingtong Telecommunication on October 10, 2024 and sell it today you would lose (89.00) from holding Hubei Yingtong Telecommunication or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ciwen Media Co vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Ciwen Media |
| Hubei Yingtong Telec |
Ciwen Media and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Hubei Yingtong
The main advantage of trading using opposite Ciwen Media and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Ciwen Media vs. Healthcare Co | Ciwen Media vs. V V Food | Ciwen Media vs. Guilin Seamild Foods | Ciwen Media vs. Impulse Qingdao Health |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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