Correlation Between Ciwen Media and China Merchants
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By analyzing existing cross correlation between Ciwen Media Co and China Merchants Bank, you can compare the effects of market volatilities on Ciwen Media and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and China Merchants.
Diversification Opportunities for Ciwen Media and China Merchants
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ciwen and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Ciwen Media i.e., Ciwen Media and China Merchants go up and down completely randomly.
Pair Corralation between Ciwen Media and China Merchants
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 3.08 times more return on investment than China Merchants. However, Ciwen Media is 3.08 times more volatile than China Merchants Bank. It trades about 0.13 of its potential returns per unit of risk. China Merchants Bank is currently generating about -0.09 per unit of risk. If you would invest 679.00 in Ciwen Media Co on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Ciwen Media Co or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. China Merchants Bank
Performance |
| Timeline |
| Ciwen Media |
| China Merchants Bank |
Ciwen Media and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and China Merchants
The main advantage of trading using opposite Ciwen Media and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, China Merchants 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 Merchants will offset losses from the drop in China Merchants' long position.| Ciwen Media vs. Lutian Machinery Co | Ciwen Media vs. China Longyuan Power | Ciwen Media vs. PetroChina Co Ltd | Ciwen Media vs. Bank of China |
| China Merchants vs. Yunnan Jianzhijia Health Chain | China Merchants vs. Mingchen Health Co | China Merchants vs. XinJiang GuoTong Pipeline | China Merchants vs. Healthcare Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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