Correlation Between COL Digital and Sichuan Yahua
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By analyzing existing cross correlation between COL Digital Publishing and Sichuan Yahua Industrial, you can compare the effects of market volatilities on COL Digital and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Sichuan Yahua.
Diversification Opportunities for COL Digital and Sichuan Yahua
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Sichuan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of COL Digital i.e., COL Digital and Sichuan Yahua go up and down completely randomly.
Pair Corralation between COL Digital and Sichuan Yahua
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.94 times more return on investment than Sichuan Yahua. However, COL Digital is 1.94 times more volatile than Sichuan Yahua Industrial. It trades about 0.19 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.23 per unit of risk. If you would invest 1,744 in COL Digital Publishing on August 25, 2024 and sell it today you would earn a total of 1,039 from holding COL Digital Publishing or generate 59.58% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| COL Digital Publishing |
| Sichuan Yahua Industrial |
COL Digital and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Sichuan Yahua
The main advantage of trading using opposite COL Digital and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua'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 |
| Sichuan Yahua vs. Changchun UP Optotech | Sichuan Yahua vs. Anhui Deli Household | Sichuan Yahua vs. Kangping Technology Co | Sichuan Yahua vs. CGN Nuclear 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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