Correlation Between COL Digital and Wintao Communications
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By analyzing existing cross correlation between COL Digital Publishing and Wintao Communications Co, you can compare the effects of market volatilities on COL Digital and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Wintao Communications.
Diversification Opportunities for COL Digital and Wintao Communications
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Wintao is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of COL Digital i.e., COL Digital and Wintao Communications go up and down completely randomly.
Pair Corralation between COL Digital and Wintao Communications
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.66 times more return on investment than Wintao Communications. However, COL Digital is 1.66 times more volatile than Wintao Communications Co. It trades about 0.01 of its potential returns per unit of risk. Wintao Communications Co is currently generating about -0.05 per unit of risk. If you would invest 2,328 in COL Digital Publishing on October 14, 2024 and sell it today you would lose (91.00) from holding COL Digital Publishing or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Wintao Communications Co
Performance |
| Timeline |
| COL Digital Publishing |
| Wintao Communications |
COL Digital and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Wintao Communications
The main advantage of trading using opposite COL Digital and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| COL Digital vs. Keda Clean Energy | COL Digital vs. Great Sun Foods Co | COL Digital vs. Xizi Clean Energy | COL Digital vs. Qumei Furniture Group |
| Wintao Communications vs. Nuode Investment Co | Wintao Communications vs. BTG Hotels Group | Wintao Communications vs. Success Electronics | Wintao Communications vs. Henan Shuanghui Investment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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