Correlation Between COL Digital and Wenzhou Hongfeng
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By analyzing existing cross correlation between COL Digital Publishing and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on COL Digital and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Wenzhou Hongfeng.
Diversification Opportunities for COL Digital and Wenzhou Hongfeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Wenzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of COL Digital i.e., COL Digital and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between COL Digital and Wenzhou Hongfeng
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.26 times more return on investment than Wenzhou Hongfeng. However, COL Digital is 1.26 times more volatile than Wenzhou Hongfeng Electrical. It trades about 0.09 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about 0.1 per unit of risk. If you would invest 1,985 in COL Digital Publishing on September 5, 2024 and sell it today you would earn a total of 964.00 from holding COL Digital Publishing or generate 48.56% 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. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| COL Digital Publishing |
| Wenzhou Hongfeng Ele |
COL Digital and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Wenzhou Hongfeng
The main advantage of trading using opposite COL Digital and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| COL Digital vs. Dareway Software Co | COL Digital vs. Advanced Technology Materials | COL Digital vs. Glodon Software Co | COL Digital vs. Linewell Software Co |
| Wenzhou Hongfeng vs. Agricultural Bank of | Wenzhou Hongfeng vs. China Construction Bank | Wenzhou Hongfeng vs. Postal Savings Bank | Wenzhou Hongfeng vs. Bank of Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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