Correlation Between COL Digital and Shaanxi Meineng
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By analyzing existing cross correlation between COL Digital Publishing and Shaanxi Meineng Clean, you can compare the effects of market volatilities on COL Digital and Shaanxi Meineng 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 COL Digital with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shaanxi Meineng.
Diversification Opportunities for COL Digital and Shaanxi Meineng
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Shaanxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and COL Digital 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 COL Digital Publishing are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of COL Digital i.e., COL Digital and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between COL Digital and Shaanxi Meineng
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.19 times more return on investment than Shaanxi Meineng. However, COL Digital is 2.19 times more volatile than Shaanxi Meineng Clean. It trades about 0.06 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.04 per unit of risk. If you would invest 1,956 in COL Digital Publishing on October 26, 2024 and sell it today you would earn a total of 453.00 from holding COL Digital Publishing or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| COL Digital Publishing |
| Shaanxi Meineng Clean |
COL Digital and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shaanxi Meineng
The main advantage of trading using opposite COL Digital and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| COL Digital vs. Highbroad Advanced Material | COL Digital vs. Jiangyin Jianghua Microelectronics | COL Digital vs. Road Environment Technology | COL Digital vs. Guangdong Ellington Electronics |
| Shaanxi Meineng vs. PetroChina Co Ltd | Shaanxi Meineng vs. China Mobile Limited | Shaanxi Meineng vs. CNOOC Limited | Shaanxi Meineng vs. Ping An Insurance |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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