Correlation Between COL Digital and China Asset
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By analyzing existing cross correlation between COL Digital Publishing and China Asset Management, you can compare the effects of market volatilities on COL Digital and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and China Asset.
Diversification Opportunities for COL Digital and China Asset
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COL and China is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of COL Digital i.e., COL Digital and China Asset go up and down completely randomly.
Pair Corralation between COL Digital and China Asset
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the China Asset. In addition to that, COL Digital is 3.25 times more volatile than China Asset Management. It trades about -0.09 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.54 per unit of volatility. If you would invest 351.00 in China Asset Management on October 24, 2024 and sell it today you would earn a total of 41.00 from holding China Asset Management or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. China Asset Management
Performance |
| Timeline |
| COL Digital Publishing |
| China Asset Management |
COL Digital and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and China Asset
The main advantage of trading using opposite COL Digital and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| COL Digital vs. Gan Yuan Foods | COL Digital vs. Gem Year Industrial Co | COL Digital vs. Guangdong Jingyi Metal | COL Digital vs. China Minmetals Rare |
| China Asset vs. Aba Chemicals Corp | China Asset vs. Huizhou Speed Wireless | China Asset vs. Kingclean Electric Co | China Asset vs. COL Digital Publishing |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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