Correlation Between Ciwen Media and Eastern Communications
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By analyzing existing cross correlation between Ciwen Media Co and Eastern Communications Co, you can compare the effects of market volatilities on Ciwen Media and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Eastern Communications.
Diversification Opportunities for Ciwen Media and Eastern Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ciwen and Eastern is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Ciwen Media i.e., Ciwen Media and Eastern Communications go up and down completely randomly.
Pair Corralation between Ciwen Media and Eastern Communications
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 1.5 times more return on investment than Eastern Communications. However, Ciwen Media is 1.5 times more volatile than Eastern Communications Co. It trades about 0.25 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.11 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 | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ciwen Media Co vs. Eastern Communications Co
Performance |
| Timeline |
| Ciwen Media |
| Eastern Communications |
Ciwen Media and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Eastern Communications
The main advantage of trading using opposite Ciwen Media and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' 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 |
| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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