Correlation Between COL Digital and Oriental Times
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By analyzing existing cross correlation between COL Digital Publishing and Oriental Times Media, you can compare the effects of market volatilities on COL Digital and Oriental Times 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 Oriental Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Oriental Times.
Diversification Opportunities for COL Digital and Oriental Times
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Oriental is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Oriental Times Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Times Media 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 Oriental Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Times Media has no effect on the direction of COL Digital i.e., COL Digital and Oriental Times go up and down completely randomly.
Pair Corralation between COL Digital and Oriental Times
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the Oriental Times. But the stock apears to be less risky and, when comparing its historical volatility, COL Digital Publishing is 1.3 times less risky than Oriental Times. The stock trades about -0.12 of its potential returns per unit of risk. The Oriental Times Media is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Oriental Times Media on August 29, 2024 and sell it today you would earn a total of 178.00 from holding Oriental Times Media or generate 70.36% 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. Oriental Times Media
Performance |
| Timeline |
| COL Digital Publishing |
| Oriental Times Media |
COL Digital and Oriental Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Oriental Times
The main advantage of trading using opposite COL Digital and Oriental Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Oriental Times 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 Oriental Times will offset losses from the drop in Oriental Times' long position.| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital vs. Bank of China |
| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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