Correlation Between COL Digital and East Money
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By analyzing existing cross correlation between COL Digital Publishing and East Money Information, you can compare the effects of market volatilities on COL Digital and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and East Money.
Diversification Opportunities for COL Digital and East Money
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and East is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of COL Digital i.e., COL Digital and East Money go up and down completely randomly.
Pair Corralation between COL Digital and East Money
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, COL Digital Publishing is 1.12 times less risky than East Money. The stock trades about -0.12 of its potential returns per unit of risk. The East Money Information is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,266 in East Money Information on August 29, 2024 and sell it today you would earn a total of 248.00 from holding East Money Information or generate 10.94% 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. East Money Information
Performance |
| Timeline |
| COL Digital Publishing |
| East Money Information |
COL Digital and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and East Money
The main advantage of trading using opposite COL Digital and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money'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 |
| East Money vs. Lutian Machinery Co | East Money vs. China Longyuan Power | East Money vs. Changshu Tongrun Auto | East Money vs. PetroChina Co Ltd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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