Correlation Between Beijing Enlight and Zhejiang Publishing
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By analyzing existing cross correlation between Beijing Enlight Media and Zhejiang Publishing Media, you can compare the effects of market volatilities on Beijing Enlight and Zhejiang 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 Beijing Enlight with a short position of Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Zhejiang Publishing.
Diversification Opportunities for Beijing Enlight and Zhejiang Publishing
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Zhejiang is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media and Beijing Enlight 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 Beijing Enlight Media are associated (or correlated) with Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Beijing Enlight and Zhejiang Publishing
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.26 times more return on investment than Zhejiang Publishing. However, Beijing Enlight is 1.26 times more volatile than Zhejiang Publishing Media. It trades about -0.25 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.32 per unit of risk. If you would invest 979.00 in Beijing Enlight Media on October 11, 2024 and sell it today you would lose (104.00) from holding Beijing Enlight Media or give up 10.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Beijing Enlight Media |
| Zhejiang Publishing Media |
Beijing Enlight and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Zhejiang Publishing
The main advantage of trading using opposite Beijing Enlight and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Zhejiang 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Beijing Enlight vs. Chahua Modern Housewares | Beijing Enlight vs. Ningbo Ligong Online | Beijing Enlight vs. JCHX Mining Management | Beijing Enlight vs. Harvest Fund Management |
| Zhejiang Publishing vs. Thinkingdom Media Group | Zhejiang Publishing vs. Sportsoul Co Ltd | Zhejiang Publishing vs. Beijing Enlight Media | Zhejiang Publishing vs. Threes Company Media |
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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