Correlation Between COL Digital and Guilin Seamild
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By analyzing existing cross correlation between COL Digital Publishing and Guilin Seamild Foods, you can compare the effects of market volatilities on COL Digital and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Guilin Seamild.
Diversification Opportunities for COL Digital and Guilin Seamild
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Guilin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of COL Digital i.e., COL Digital and Guilin Seamild go up and down completely randomly.
Pair Corralation between COL Digital and Guilin Seamild
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.2 times more return on investment than Guilin Seamild. However, COL Digital is 2.2 times more volatile than Guilin Seamild Foods. It trades about 0.05 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.0 per unit of risk. If you would invest 2,084 in COL Digital Publishing on September 4, 2024 and sell it today you would earn a total of 989.00 from holding COL Digital Publishing or generate 47.46% 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. Guilin Seamild Foods
Performance |
| Timeline |
| COL Digital Publishing |
| Guilin Seamild Foods |
COL Digital and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Guilin Seamild
The main advantage of trading using opposite COL Digital and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| COL Digital vs. Lutian Machinery Co | COL Digital vs. China Longyuan Power | COL Digital vs. PetroChina Co Ltd | COL Digital vs. Bank of China |
| Guilin Seamild vs. Poly Real Estate | Guilin Seamild vs. China Vanke Co | Guilin Seamild vs. China Merchants Shekou | Guilin Seamild vs. Huafa Industrial Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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