Correlation Between COL Digital and Gansu Jiu
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By analyzing existing cross correlation between COL Digital Publishing and Gansu Jiu Steel, you can compare the effects of market volatilities on COL Digital and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Gansu Jiu.
Diversification Opportunities for COL Digital and Gansu Jiu
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Gansu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of COL Digital i.e., COL Digital and Gansu Jiu go up and down completely randomly.
Pair Corralation between COL Digital and Gansu Jiu
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.72 times more return on investment than Gansu Jiu. However, COL Digital is 1.72 times more volatile than Gansu Jiu Steel. It trades about 0.05 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.07 per unit of risk. If you would invest 2,539 in COL Digital Publishing on September 3, 2024 and sell it today you would earn a total of 499.00 from holding COL Digital Publishing or generate 19.65% 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. Gansu Jiu Steel
Performance |
| Timeline |
| COL Digital Publishing |
| Gansu Jiu Steel |
COL Digital and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Gansu Jiu
The main advantage of trading using opposite COL Digital and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| COL Digital vs. Gansu Jiu Steel | COL Digital vs. Ming Yang Smart | COL Digital vs. Aba Chemicals Corp | COL Digital vs. Loctek Ergonomic Technology |
| Gansu Jiu vs. Cangzhou Mingzhu Plastic | Gansu Jiu vs. Eastern Communications Co | Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Ningbo Tip Rubber |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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