Correlation Between COL Digital and Hubeiyichang Transportation
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By analyzing existing cross correlation between COL Digital Publishing and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on COL Digital and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Hubeiyichang Transportation.
Diversification Opportunities for COL Digital and Hubeiyichang Transportation
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and Hubeiyichang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of COL Digital i.e., COL Digital and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between COL Digital and Hubeiyichang Transportation
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the Hubeiyichang Transportation. In addition to that, COL Digital is 3.3 times more volatile than Hubeiyichang Transportation Group. It trades about -0.12 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.07 per unit of volatility. If you would invest 518.00 in Hubeiyichang Transportation Group on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Hubeiyichang Transportation Group or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| COL Digital Publishing |
| Hubeiyichang Transportation |
COL Digital and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Hubeiyichang Transportation
The main advantage of trading using opposite COL Digital and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation'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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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