Correlation Between COL Digital and Zhongjing Food
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By analyzing existing cross correlation between COL Digital Publishing and Zhongjing Food Co, you can compare the effects of market volatilities on COL Digital and Zhongjing Food 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 Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Zhongjing Food.
Diversification Opportunities for COL Digital and Zhongjing Food
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Zhongjing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food 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 Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of COL Digital i.e., COL Digital and Zhongjing Food go up and down completely randomly.
Pair Corralation between COL Digital and Zhongjing Food
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the Zhongjing Food. In addition to that, COL Digital is 2.16 times more volatile than Zhongjing Food Co. It trades about -0.04 of its total potential returns per unit of risk. Zhongjing Food Co is currently generating about 0.01 per unit of volatility. If you would invest 2,980 in Zhongjing Food Co on December 8, 2024 and sell it today you would earn a total of 6.00 from holding Zhongjing Food Co or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Zhongjing Food Co
Performance |
| Timeline |
| COL Digital Publishing |
| Zhongjing Food |
COL Digital and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Zhongjing Food
The main advantage of trading using opposite COL Digital and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| COL Digital vs. Xizi Clean Energy | ||
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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