Correlation Between COL Digital and Shenzhen Longsys
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By analyzing existing cross correlation between COL Digital Publishing and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on COL Digital and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shenzhen Longsys.
Diversification Opportunities for COL Digital and Shenzhen Longsys
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of COL Digital i.e., COL Digital and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between COL Digital and Shenzhen Longsys
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.44 times more return on investment than Shenzhen Longsys. However, COL Digital is 1.44 times more volatile than Shenzhen Longsys Electronics. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about 0.03 per unit of risk. If you would invest 1,015 in COL Digital Publishing on August 25, 2024 and sell it today you would earn a total of 1,768 from holding COL Digital Publishing or generate 174.19% 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. Shenzhen Longsys Electronics
Performance |
| Timeline |
| COL Digital Publishing |
| Shenzhen Longsys Ele |
COL Digital and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shenzhen Longsys
The main advantage of trading using opposite COL Digital and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' 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 |
| Shenzhen Longsys vs. Ming Yang Smart | Shenzhen Longsys vs. 159005 | Shenzhen Longsys vs. Loctek Ergonomic Technology | Shenzhen Longsys vs. Xiamen East Asia |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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