Correlation Between 159005 and Changjiang Publishing
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By analyzing existing cross correlation between 159005 and Changjiang Publishing Media, you can compare the effects of market volatilities on 159005 and Changjiang Publishing 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 159005 with a short position of Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Changjiang Publishing.
Diversification Opportunities for 159005 and Changjiang Publishing
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 159005 and Changjiang is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing and 159005 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 159005 are associated (or correlated) with Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of 159005 i.e., 159005 and Changjiang Publishing go up and down completely randomly.
Pair Corralation between 159005 and Changjiang Publishing
Assuming the 90 days trading horizon 159005 is expected to generate 49.67 times less return on investment than Changjiang Publishing. But when comparing it to its historical volatility, 159005 is 117.87 times less risky than Changjiang Publishing. It trades about 0.14 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 529.00 in Changjiang Publishing Media on September 13, 2024 and sell it today you would earn a total of 393.00 from holding Changjiang Publishing Media or generate 74.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Changjiang Publishing Media
Performance |
| Timeline |
| 159005 |
| Changjiang Publishing |
159005 and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Changjiang Publishing
The main advantage of trading using opposite 159005 and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.The idea behind 159005 and Changjiang Publishing Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Changjiang Publishing vs. Ming Yang Smart | Changjiang Publishing vs. 159681 | Changjiang Publishing vs. 159005 | Changjiang Publishing vs. Loctek Ergonomic Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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