Correlation Between COL Digital and Zhejiang Weixing
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By analyzing existing cross correlation between COL Digital Publishing and Zhejiang Weixing New, you can compare the effects of market volatilities on COL Digital and Zhejiang Weixing 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 Zhejiang Weixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Zhejiang Weixing.
Diversification Opportunities for COL Digital and Zhejiang Weixing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Zhejiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Zhejiang Weixing New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Weixing New 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 Zhejiang Weixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Weixing New has no effect on the direction of COL Digital i.e., COL Digital and Zhejiang Weixing go up and down completely randomly.
Pair Corralation between COL Digital and Zhejiang Weixing
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.48 times more return on investment than Zhejiang Weixing. However, COL Digital is 2.48 times more volatile than Zhejiang Weixing New. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Weixing New is currently generating about -0.03 per unit of risk. If you would invest 961.00 in COL Digital Publishing on August 29, 2024 and sell it today you would earn a total of 2,118 from holding COL Digital Publishing or generate 220.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Zhejiang Weixing New
Performance |
| Timeline |
| COL Digital Publishing |
| Zhejiang Weixing New |
COL Digital and Zhejiang Weixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Zhejiang Weixing
The main advantage of trading using opposite COL Digital and Zhejiang Weixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Zhejiang Weixing 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 Weixing will offset losses from the drop in Zhejiang Weixing's 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 |
| Zhejiang Weixing vs. PetroChina Co Ltd | Zhejiang Weixing vs. China State Construction | Zhejiang Weixing vs. China Mobile Limited | Zhejiang Weixing vs. Industrial and Commercial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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