Correlation Between COL Digital and Tonghua Grape
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By analyzing existing cross correlation between COL Digital Publishing and Tonghua Grape Wine, you can compare the effects of market volatilities on COL Digital and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Tonghua Grape.
Diversification Opportunities for COL Digital and Tonghua Grape
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Tonghua is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of COL Digital i.e., COL Digital and Tonghua Grape go up and down completely randomly.
Pair Corralation between COL Digital and Tonghua Grape
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.35 times more return on investment than Tonghua Grape. However, COL Digital is 2.35 times more volatile than Tonghua Grape Wine. It trades about 0.07 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 910.00 in COL Digital Publishing on September 3, 2024 and sell it today you would earn a total of 2,128 from holding COL Digital Publishing or generate 233.85% 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. Tonghua Grape Wine
Performance |
| Timeline |
| COL Digital Publishing |
| Tonghua Grape Wine |
COL Digital and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Tonghua Grape
The main advantage of trading using opposite COL Digital and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape'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 |
| Tonghua Grape vs. Beijing Wantai Biological | Tonghua Grape vs. Aluminum Corp of | Tonghua Grape vs. COL Digital Publishing | Tonghua Grape vs. Shaanxi Meineng Clean |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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