Correlation Between Ciwen Media and Railway Signal
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By analyzing existing cross correlation between Ciwen Media Co and Railway Signal Communication, you can compare the effects of market volatilities on Ciwen Media and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Railway Signal.
Diversification Opportunities for Ciwen Media and Railway Signal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ciwen and Railway is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Ciwen Media i.e., Ciwen Media and Railway Signal go up and down completely randomly.
Pair Corralation between Ciwen Media and Railway Signal
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 1.9 times more return on investment than Railway Signal. However, Ciwen Media is 1.9 times more volatile than Railway Signal Communication. It trades about 0.25 of its potential returns per unit of risk. Railway Signal Communication is currently generating about 0.04 per unit of risk. If you would invest 635.00 in Ciwen Media Co on September 4, 2024 and sell it today you would earn a total of 127.00 from holding Ciwen Media Co or generate 20.0% 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. Railway Signal Communication
Performance |
| Timeline |
| Ciwen Media |
| Railway Signal Commu |
Ciwen Media and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Railway Signal
The main advantage of trading using opposite Ciwen Media and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.| Ciwen Media vs. Hoshine Silicon Ind | Ciwen Media vs. Iat Automobile Technology | Ciwen Media vs. China Construction Bank | Ciwen Media vs. Guangzhou KingTeller Technology |
| Railway Signal vs. Kweichow Moutai Co | Railway Signal vs. NAURA Technology Group | Railway Signal vs. Zhejiang Orient Gene | Railway Signal vs. APT 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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