Correlation Between COL Digital and Kunwu Jiuding
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By analyzing existing cross correlation between COL Digital Publishing and Kunwu Jiuding Investment, you can compare the effects of market volatilities on COL Digital and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Kunwu Jiuding.
Diversification Opportunities for COL Digital and Kunwu Jiuding
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Kunwu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of COL Digital i.e., COL Digital and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between COL Digital and Kunwu Jiuding
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.41 times more return on investment than Kunwu Jiuding. However, COL Digital is 1.41 times more volatile than Kunwu Jiuding Investment. It trades about 0.06 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.02 per unit of risk. If you would invest 1,593 in COL Digital Publishing on August 26, 2024 and sell it today you would earn a total of 1,190 from holding COL Digital Publishing or generate 74.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| COL Digital Publishing |
| Kunwu Jiuding Investment |
COL Digital and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Kunwu Jiuding
The main advantage of trading using opposite COL Digital and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's 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 |
| Kunwu Jiuding vs. New China Life | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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