Correlation Between COL Digital and Sichuan Newsnet
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By analyzing existing cross correlation between COL Digital Publishing and Sichuan Newsnet Media, you can compare the effects of market volatilities on COL Digital and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Sichuan Newsnet.
Diversification Opportunities for COL Digital and Sichuan Newsnet
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and Sichuan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of COL Digital i.e., COL Digital and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between COL Digital and Sichuan Newsnet
Assuming the 90 days trading horizon COL Digital is expected to generate 3.09 times less return on investment than Sichuan Newsnet. But when comparing it to its historical volatility, COL Digital Publishing is 1.3 times less risky than Sichuan Newsnet. It trades about 0.05 of its potential returns per unit of risk. Sichuan Newsnet Media is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,401 in Sichuan Newsnet Media on November 3, 2024 and sell it today you would earn a total of 123.00 from holding Sichuan Newsnet Media or generate 8.78% 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. Sichuan Newsnet Media
Performance |
| Timeline |
| COL Digital Publishing |
| Sichuan Newsnet Media |
COL Digital and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Sichuan Newsnet
The main advantage of trading using opposite COL Digital and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's long position.| COL Digital vs. Allmed Medical Products | COL Digital vs. Tinavi Medical Technologies | COL Digital vs. Dr Peng Telecom | COL Digital vs. Hangzhou Arcvideo Technology |
| Sichuan Newsnet vs. Cambricon Technologies Corp | Sichuan Newsnet vs. SGSG Sciencetechnology Co | Sichuan Newsnet vs. Loongson Technology Corp | Sichuan Newsnet vs. Zhonghang Electronic Measuring |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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